Shiba Inu upholds a bullish outlook that stemmed from trading June’s low at $0.00000597. The second most prominent meme coin has since then seen its value grow by at least 75% to exchange hands at $0.00001046 on Monday.
The support accorded to Shiba Inu above $0.00001 has in addition to enhancing investor confidence absorbed the selling pressure due to profit booking activities. This stability can also be attributed to the potential launch of the Shibarium layer 2 protocol.
SHIB Price Rides The Shibarium Launch Wave
The Shiba Inu community is looking forward to the launch of the layer 2 scaling protocol Shibarium set to be a game-changer for the ecosystem.
Shibarium is a Layer-2 protocol that will enhance the Shiba Inu ecosystem by enabling faster, cheaper, and more scalable transactions on the Ethereum network.
The new protocol is expected to go live after a Toronto conference, starting on August 15, 2023, and will feature a native token called BONE, which will be used to pay gas fees and reward validators.
Shibarium will also support various Shiba Inu-based tokens, such as SHIB, LEASH, TREAT, and SHI, and will integrate with ShibaSwap, the decentralized exchange of the project.
Shibarium could boost the price of SHIB by increasing its utility, demand, and deflationary pressure.
Meanwhile, traders would be looking forward to a successful rebound of SHIB price above the upper descending support, currently serving as the immediate support.
Traders already with exposure to long positions in SHIB will likely hold steady now that the buy signal from the Moving Average Convergence Divergence (MACD) indicator adds credence to the bullish outlook.
With the 50-day Exponential Moving Average (EMA) indicator almost flipping above the longer-term 100-day EMA (blue), a golden cross pattern would come into the picture, possibly propping SHIB for an extended rally targeting levels at $0.000014, $0.000016, and $0.00002.
Whales Throw Their Weight Behind Shiba Inu Rally
Etherscan shows the emergence of a brand-new whale who made a massive purchase of SHIB tokens worth approximately $48 million.
Although still unknown, the wallet which received 4.59 trillion SHIB, immediately climbed the ranks among the top SHIB whales.
It is generally believed that this whale is preparing for the launch of Shibarium Mainnet, which could propel Shiba Inu to higher levels with the above target at $0.00002 seeming extremely conservative.
For now, Shiba Inu must hold support above $0.00001 to keep buyers interested and sellers at bay. Declines below this level may jeopardize the expected rally but also offer sidelined investors a chance to buy lower-priced SHIB tokens.
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