YEREVAN (CoinChapter.com) – The Shiba Inu coin price stood at $0.00001243 ahead of the European session on Jan 17, after a massive 20% bullish push within the previous 24 hours. Notably, the uptick came in the wake of another announcement on the much-anticipated Layer 2 Network tweet without giving away the actual Shibarium launch date.
Shiba Inu coin price jumps 20%
As mentioned, the Shiba Inu coin price stood 20% higher on Jan 17, despite the lack of similar action on the Bitcoin chart. The digital asset’s trading volumes have not fizzled throughout the day and could still reward SHIB bulls with more yields. Additionally, the SHIB/USDT exchange rate broke a significant resistance on Jan 15, relevant since Aug 2022.
In detail, the Shiba Inu coin traded within a setup named ‘descending channel.’ It featured two down-sloping trendlines that took the token price incrementally lower throughout Q3 and Q4. However, SHIB not only broke above the said resistance but retested it as support on Jan 16, strengthening the bullish claim.
Shiba Inu coin price stood above its 20,50,100, and 200-day exponential moving averages (EMAs; multi-colored waves on the chart above). However, its relative strength index charted through ‘overbought’ territory since Jan 12.
The trading volumes are strong, but the overbought RSI could bring a cool-off
In detail, the RSI is a gouge for best market entry and exit points. The oscillator’s above-70 reading generally means that the asset price is ‘overbought’, i.e., priced above its ‘normal’ range. Traders who turn to RSI for technical cues might construe the reading as a good time to exit the market and secure their profits. If so, SHIB might cool off before starting a new leg up.
In the event of a bullish continuation, the next target for SHIB would stand at $0.00001295 resistance. If the Shiba Inu coin conquers that level with confidence, the next possible resistance will stand at $0.00001402. Conversely, if the bulls are unable to hold up the trading volumes, the next bearish target would stand at the $0.00001157 support.
Also read: Shibarium Launch: Will It Affect Shiba Inu (SHIB) Price?
Meanwhile, the reasons behind the bullish push are noteworthy.
Shibarium release date unspecified, but excitement builds
As mentioned in the previous Shiba Inu coin review, Shibarium is a layer 2 network that is planned to pump the scalability for the blockchain and ensure faster transactions at a lower cost. In the latest update, Shiba Inu representatives asserted that the delay in the Shibarium release date is not an issue as long as the Network functions properly, and that’s what they choose to focus on at this point.
Patience is key, and some see Shibarium as a price pumping tool, but that is not the project’s focus and never has been. Shibarium is being built to fulfill Ryoshi’s vision and provide the community with a tool to build and grow the project on their own terms.
read the blog post on Jan 15.
The post also mentioned that Shiba Inu’s Layer 2 network can “serve different industry areas such as metaverse, web3 innovation, and gaming.” This is primarily due to the “commonality of scalability and performance limitations of current existing blockchain networks.” read the article.
Meanwhile, another exchange listing could have also contributed to the SHIB token’s recent pump. As announced on Jan 16, South Koreans can now buy Shiba Inu directly using the Korean Won on the UpBit exchange.
Buy orders are limited for the opening 5 minutes for SHIB. Based on the closing price (0.01304 KRW) of Coinmarketcap in previous day, sell orders lower than -10% will not be allowed.
specified the exchange.
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