Shiba Inu wants to be more than just a Dogecoin (DOGE) inspired meme coin as it nears the launch of its Layer 2 network called Shibarium. Meanwhile, Shiba Inu (SHIB) Token has emerged as his one of the best performers so far in 2023.
SHIB price to rise by 60% in 2023
The price of SHIB is up nearly 60% year-to-date (YTD) to $0.00001294, its highest since early November 2022.
The gains started to show up largely due to favorable macro conditions that caused similar upsurges elsewhere in the crypto market. Nonetheless, SHIB price gains gained momentum as investors appreciated the announcement of Sibarium’s beta release.
Sibarium is reportedly a Layer 2 network that runs on top of the Ethereum blockchain mainnet. In other words, developers will be able to build and launch decentralized applications while aiming to reduce transaction costs and improve network scalability.
SHIB’s price has risen 25% since January 16, when the Shiba Inu team teased the audience with the announcement of Sibarium’s launch.
Introducing Shibarium: Shiba Inu Layer 2 Network — Rejoice #Shibu Army!Sibarium Beta will be released soon. Through this article, I would like to introduce some basic concepts to provide clarity to the community.
Read more: https://t.co/xWyPaVlQQ4
— Shib (@Shibtoken) January 15, 2023
Shiba Inu Price: Is the 75% Boom Coming Again?
According to the Jan. 18 Relative Strength Index (RSI), it was almost 86 on Jan. 18, 16 points above the overbought threshold of 70.
Related: What is ShibaSwap and how does it work?
Ideally, an overbought RSI would encourage investors to sell their positions, leading to a price correction. In other words, the SHIB is at risk of falling towards the 200-day exponential moving average near $0.00001120 represented by the blue line in the chart below.
Longer term, however, the SHIB price rally could continue if the bullish reversal pattern on the weekly chart is to be believed.
This pattern, called a “falling wedge”, occurs when the price falls within a range defined by two falling and converging trendlines.
It resolves after the price breaks above the upper trendline and towards the level with a length equal to the maximum height of the wedge.
SHIB has entered the breakout phase of the descending wedge pattern as shown below. It is now up to $0.00002063 by March 2023, a 35% increase from current price levels.
Alternatively, there is a bearish scenario where the SHIB could fall below the wedge breakout target if the price reverses from a temporary resistance level at the 50-day exponential moving average (red line) near $0.00001309.
Such a fall risks pushing the SHIB price down 40% from the upper trendline of the wedge near $0.00000800 or the current price level.
This article does not contain investment advice or recommendations. All investment and trading moves involve risk and readers should conduct their own research when making decisions.