Popular memecoin Shiba Inu (SHIB), which made a jump from its lowest level of $0.00000597 in June, continues to maintain its upward trend. The price of the memecoin has increased by over 75% since then. The support level above $0.00001 seen by Shiba Inu has managed to absorb the selling pressure thanks to limited profit realization that increased investor confidence. This stable outlook in SHIB is directly related to the launch of the Layer 2 protocol Shibarium, which is expected to take place on August 15-16, and it is a matter of great curiosity whether investors will continue to react positively after the launch of Shibarium.
SHIB Price Continues to Rise Ahead of Shibarium Launch
The Shiba Inu community is focused on the launch of the Layer 2 scaling protocol Shibarium, which is expected to change the rules of the game for the ecosystem. Shibarium stands out as a Layer 2 protocol that will enable faster, cheaper, and more scalable transactions on the Ethereum network, improving the Shiba Inu ecosystem.
The new protocol is expected to be released after the Canada Blockchain Futurist Conference, which will begin on August 15, 2023, and end on August 16. The protocol will come with a local asset called BONE, which will be used to pay gas fees and reward validators. Shibarium will also provide support for various Shiba Inu-based tokens such as SHIB, LEASH, TREAT, and SHI, and will work in integration with the decentralized exchange ShibaSwap. It is expected that Shibarium will significantly increase the price of SHIB by increasing utility, demand, and deflationary pressure, and even reach new record levels.
On the technical side, investors are waiting for the memecoin’s price to recover above the falling trendline support that previously acted as resistance but started to serve as support after it was broken. Investors who have already opened long positions in SHIB are likely to continue to hold their positions due to the reliability added to the bullish outlook by the buying signal from the Moving Average Convergence Divergence (MACD) indicator.
The fact that the 50-day Exponential Moving Average (EMA) indicator has almost crossed above the long-term 100-day EMA (blue) and the resulting golden cross formation suggests that SHIB’s price may remain within the rally targeting the levels of $0.000014, $0.000016, and $0.00002.
A New Shiba Inu Whale Emerges
Etherscan, the official Blockchain explorer for Ethereum, reveals positive information that a new whale has emerged after buying a large amount of SHIB tokens worth approximately $48 million. The identity of the whale is unknown, but it has risen to the top among the largest SHIB whales by purchasing 4.59 trillion SHIB. Market observers consider that the whale is preparing for the mainnet launch of Shibarium.
Technically, Shiba Inu needs to continue holding above the support at $0.00001 to attract buyers and keep sellers away. While a drop below this level could be a buying opportunity, it could also jeopardize the current rally.
