SHIB price preps for 75% boom as Shiba Inu teases L2 blockchain launch

Shiba Inu is hoping to go much than conscionable a Dogecoin-inspired meme cryptocurrency arsenic it comes person to launching its layer-2 network called Shibarium. Meanwhile, the SHIB token has emerged arsenic 1 of the best-performers truthful acold successful 2023.

SHIB terms jumps 60% successful 2023

SHIB's terms has rallied astir 60% year-to-date (YTD) to $0.00001294, its highest since aboriginal November 2022.

SHIB/USDT regular terms chart. Source: TradingView

The gains started appearing chiefly owed to favorable macro conditions that prompted akin rallies elsewhere successful the crypto market. Nonetheless, the Shiba Inu terms rally picked up momentum arsenic investors assessed its announcement of the upcoming beta merchandise of Shibarium.

Shibarium is reportedly a layer-2 web that would tally atop the Ethereum blockchain mainnet. In different words, it would alteration developers to physique and motorboat decentralized applications (dapps) portion aiming for little transactional costs and improved web scalability.

Shiba Inu terms is present up 25% since Jan. 16 erstwhile the Shiba Inu squad teased its assemblage with the Shibarium motorboat announcement.

— Shib (@Shibtoken) January 15, 2023

Shiba Inu price: Another 75% roar ahead?

Shiba Inu's rally has made it an excessively bought plus connected a regular timeframe, according to its comparative spot scale (RSI) speechmaking astatine astir 86 connected Jan. 18 — sixteen points supra the overbought threshold of 70.

Related: What is ShibaSwap and however does it work?

Ideally, an overbought RSI punctual investors to unload their positions, starring to a terms correction. In different words, SHIB risks dropping toward its 200-day exponential moving mean (200-week EMA; the bluish wave) adjacent $0.00001120.

SHIB/USDT regular terms chart. Source: TradingView

However, connected a semipermanent basis, SHIB's terms rally is apt to continue, if the bullish reversal signifier connected the play illustration is to beryllium believed.

Dubbed the "falling wedge," the signifier develops erstwhile the terms trends little wrong a scope defined by 2 descending, converging trendlines.

It resolves aft the terms breaks supra the precocious trendline toward the level astatine a magnitude adjacent to the wedge's maximum height.

SHIB has entered the breakout signifier of its falling wedge pattern, arsenic shown below. It present sees an extended upside toward $0.00002063 by March 2023, up 35% from existent terms levels.

SHIB/USDT play terms illustration featuring falling wedge. Source: TradingView

Alternatively, a potentia bearish script scenario would spot SHIB falling abbreviated of the wedge breakout people if terms reverses from its interim absorption level astatine the 50-week EMA (the reddish wave) adjacent $0.00001309.

Such a downturn would hazard sending the Shiba Inu terms toward the wedge's precocious trendline adjacent $0.00000800, oregon down 40% from existent terms levels.

This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.