Story Highlights

  • With the launch of Shibarium, Shiba Inu hopes to attract users into the low-fee ecosystem.

  • SHIB price has seen a significant drop of 9% in the past 24 hours.

  • The falling Shiba Inu price is having trouble gaining a foothold at the 200-day moving average.

With the launch of Shibarium, the Ethereum second-layer network, Shiba Inu has taken another step towards becoming a serious blockchain project. In order to provide real-world use cases, Shibarium focuses on DeFi and gaming and will use SHIB tokens as fees.

The launch of the Shibarium network is unlikely to bring a significant spark to the Shibacoin price amid the bear market. As Bitcoin fell below its consolidation range, altcoins suffered a similar fate.

The price of Shiba Inu Coin has fallen sharply in the past few days, reversing from the 50% Fibonacci level of $0.0000106. Following the Evening Star, SHIB coin price dropped 14% resulting in multiple bearish candles.

As mentioned in our last SHIB price analysis, the worst-case scenario sees the meme coin testing the 200-day MA. However, at press time, the long-tailed pattern in the daily candles shows lower price rejection. If the price sustains above the 200-day MA, this will ignite hopes of a reversal.

The SHIB token price is currently up 1.30% intraday and is trading at $0.00000933, closing at the psychological mark of $0.000010.

The sharp increase in trading volumes adds credibility to the corrective phase and technical indicators also point to it. The MACD indicator has seen a bearish crossover and the RSI line has fallen towards the midline.

If the bullish trend sustains above the 200-day SMA, a reversal rally could reclaim $0.000010. Moreover, a breakout above the 50% Fibonacci level would push the Shibacoin price up an additional 21% to $0.00001296.

On the other hand, if SHIB price fails to rise above the 200-day SMA, the downtrend will test the 50-day SMA. The ensuing downtrend is likely to challenge the bullish dominance of the uptrend line, signaling a deep correction and potential dip buying.