The price of Shiba Inu (SHIB) has experienced a 5% gain today, showing signs of potential recovery after a significant downtrend in recent weeks. Despite the recent drop in price, which amounted to an 11% decrease in a week and 20% drop over the past 30 days, several technical indicators and the anticipated public launch of Layer 2 network Shibarium hint at a possible surge in SHIB’s price in the near future.
Examining SHIB’s relative strength index (RSI), the cryptocurrency appears to be recovering out of its oversold bounds towards the 50 mark, suggesting a possible rally. Furthermore, the 30-day moving average remains well below the 200-day average for almost a week now, insinuating that a correction upwards is due. An upward movement in SHIB’s support level also hints at the cryptocurrency’s consolidation around higher price levels.
Nonetheless, the situation appears less promising when examining SHIB’s 24-hour trading volume. With a current volume of roughly $175 million, it pales in comparison to February’s rally volume of over $1 billion. Despite the lower volume, ERC-20 whales seem to continue holding significant amounts of SHIB, indicating sustained interest in the token.
For many holders, the upcoming public release of Layer 2 network Shibarium serves as a significant milestone. The platform aims to provide faster and more affordable transactions, boosting the growth of Shiba Inu’s ecosystem and driving up demand for the token. Shibarium is currently in beta form and its release date has yet to be determined, but constant developments are being made, with various essential features being tested in recent weeks.
In addition to accelerating transaction times, Shibarium is also expected to increase SHIB burning, contributing to the token’s relative demand and potentially sparking a price increase. Under optimistic conditions, SHIB could reclaim the $0.00001 level, or even lose a decimal place by the end of the year, provided the development progresses as planned.
However, numerous factors remain uncertain, such as the timing of the Layer 2 network Shibarium launch, and investor interest in alternative tokens continues. With plenty of altcoins and meme tokens on the market, traders might look elsewhere for potential investments. One such option is AiDoge, an artificial intelligence-generated meme platform that has already raised over $5.6 million in its ongoing presale.
AiDoge’s native $AI token offers utility on its platform, such as allowing users to submit and upvote memes, as well as being used for staking. As the presale price of the token continues to increase in the coming days, interested investors may want to consider participating before the token becomes more expensive or rallies after being listed on exchanges in the coming months.
Source: Cryptonews
