Shiba Inu has slowed down its rally after surpassing the $0.00001 resistance and reaching its highest level of $0.00001136 in August. Despite a 3.6% drop in the last 24 hours, the second-leading meme coin is trading at $0.00000988, with a 19% increase in the past two weeks and a 26% increase in the past 30 days.
Shibarium, an Ethereum Layer 2 solution provider protocol aiming to address scalability and transaction cost issues in the Shiba Inu ecosystem, is reportedly nearing completion ahead of a potential launch this week.
Shytoshi Kusama, the lead developer of Shiba Inu, confirmed last week that the Shibarium protocol is “almost complete.” The progress update came with the announcement of a new partner, Alpha Transform, which will “help guide this next phase of the Shiba global phenomenon.”
It is expected that Shibarium will upgrade the SHIB ecosystem to seamlessly interact with Ethereum (Layer 1), the main chain, with significantly lower fees for off-chain transactions before being added to the main chain.
Enzo Villan, the Head of Investment at Alpha Transform, stated that Ethereum is still grappling with high transaction fees and network congestion, and there are two problems that Shiba Inu developers aim to solve with the release of Shibarium, which has seen “over 21 million wallets and more than 250,000 smart contracts written” on the testnet. Shibarium has the potential to increase the utility of the SHIB token as it could influence the mainstream adoption of cryptocurrency and blockchain technology.
The launch event, expected to take place on August 16 at the Blockchain Futurist Conference, could trigger a price rally. However, the specific details of the launch remain uncertain. Meanwhile, as investors position themselves ahead of the launch, Shiba Inu experienced a rally last week and continued on Monday and Tuesday without dropping below $0.00001.
According to an SHIB-XRP investor, X,:
Has the day truly come?! It will be a summer where XRP becomes clear, and then Shibarium will be remembered; I will mark this year on my calendar and celebrate it every year!
Despite the dazzling launch of Shibarium, SHIB continues to trade in the red. The rejection of the macro downtrend (dotted descending trend line at the top) has increased overall pressure, and it tested support at $0.00000939, provided by the 200-day Exponential Moving Average (EMA) (purple). This pullback may be due to whales selling to take profits after the rise that started at $0.00000716 at the beginning of July.
Despite the pullback, Shiba Inu could continue to rise with a relatively positive outlook supported by its crossing above the 50-day EMA (red) and forming a golden cross.
The launch of Shibarium and the burning of 94% or 222,200,451 SHIB tokens could be factors that trigger the next rally between $0.00001 and $0.00002. The token burn program was implemented to address the high token supply in the ecosystem, potentially creating value for Shiba Inu enthusiasts.