The Shiba Inu price has experienced minor fluctuations in recent days, currently standing at $.00000850, representing a 2% drop in the last week. This continues in the backdrop of an uncertain period for the cryptocurrency market. Although SHIB has fallen by 19% in the past month, it is up by 5% since the beginning of the year, which is far from the gains achieved by many major cryptocurrencies.
Notwithstanding its recent performance, SHIB is up by 1% from a low recorded yesterday, indicating a possible resurgence of momentum. The long-awaited Shibarium layer-two network launch could potentially lead to significant rallies in the coming weeks, as the coin appears to have reached a bottom.
Technical analysis of SHIB’s chart suggests a gradual accumulation of momentum, with its relative strength index inching towards 50 after spending a day around or just below 30, an indicator of overselling. Additionally, the altcoin’s 30-day moving average has seemingly reached a bottom, hinting at an incoming rebound. Moreover, SHIB’s support level is gradually rising, indicating a consolidation and strengthening of its position following recent declines.
The broader cryptocurrency market’s 1% gain in the past 24 hours could explain SHIB’s minor recovery. However, this fragile recovery may be short-lived if the US defaults on its debt, with Congress and the White House facing a June 1 deadline to raise the debt ceiling. Defaulting on debt payments would adversely impact the cryptocurrency market, including SHIB, which has exhibited a less robust recovery in previous months compared to other major tokens.
Despite these concerns, the medium- and long-term outlook for SHIB appears promising, with noteworthy developments such as the launch of Shibarium and SHIB: The Metaverse on the horizon. The Shibarium layer-two network is expected to fully launch anytime between now and the end of August, significantly enhancing Shiba Inu’s attractiveness as a platform for dapps and DeFi. As a layer-two network, Shibarium will offer cheaper and faster transactions to Shiba Inu, addressing Ethereum’s notoriously high fees.
Recent data reveals that the Shibarium testnet has processed over 12 million transactions, indicating strong interest in the layer-two network. This suggests a potential expansion in Shiba Inu dapps and projects upon its full launch. In addition, the network’s launch will increase SHIB burning, subsequently decreasing its supply, possibly leading to a price increase.
With anticipation remaining high for the eventual SHIB: The Metaverse launch, SHIB’s current undervaluation could be followed by extensive rallies in the second half of the year. From its current price of $0.00000851, SHIB could realistically rise to $0.00001 or $0.00002 in the coming weeks, and even reach $0.00005 with the launch of Shibarium.
Source: Cryptonews
