Shiba Inu (SHIB) has experienced a significant rally in its price over the past few days, reaching its highest level since May 2023. This surge in price comes amid a positive sentiment in the overall cryptocurrency market. SHIB, which is the second-largest meme coin by market capitalization, has seen a 17% increase in the past week and a 22% increase year-to-date. Additionally, SHIB has grown by over 27% in the month-to-date period.
The recent rally in Shiba Inu’s price can be attributed to the overall positive swing in the crypto market. The coin’s total market capitalization has surged to $5.83 billion, making it the 14th largest cryptocurrency by market cap. The global crypto market cap has also increased by more than 2% in the last day, reaching $1.18 trillion. Furthermore, the total crypto market volume has seen a 25.25% increase over the same period.
The surge in SHIB’s price can also be linked to the recent upward movement of Bitcoin, the largest cryptocurrency. After a period of stagnation and inactivity, Bitcoin has started to climb again and is now challenging the $30,000 level. Bitcoin’s rally has led to a spike in liquidations across the cryptocurrency market. As a result, many altcoins, including Shiba Inu, have experienced significant gains in the past 24 hours. The improved sentiment in the crypto market has raised hopes for a sustained rally.
Shiba Inu has been on a bearish trajectory for most of this year, but its recent trend marks a shift from its long-term bearish sentiment. The coin’s growth has also been supported by positive on-chain activity, including an 81% increase in trading activity over the last day.
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Moreover, the upcoming launch of Shibarium, Shiba Inu’s Layer 2 protocol, has contributed to the recent price growth. The launch is scheduled to take place at the Blockchain Futurist Conference, which will happen next weekend. Shibarium is expected to enhance usability through the introduction of decentralized applications (dApps), potentially leading to high demand for Shiba Inu and increasing its influence in the meme coin ecosystem. This, in turn, could drive its price higher.
From a technical analysis perspective, the daily chart indicates that Shiba Inu’s price has been on an upward trajectory in recent days. The coin has surpassed the major hurdle at the 200-day EMA (Exponential Moving Average) at $0.00000930. At the time of writing, SHIB was trading 3.46% higher at $0.00000986. It has also moved above the 50-day and 200-day EMAs. The Relative Strength Index (RSI) stands at 66, just four points away from the overbought zone.
Based on these technical indicators, it is expected that the Shiba Inu price will continue to rise in the coming days, with bulls aiming for the next resistance level at $0.00001075. If the coin surpasses this level, further gains towards $0.00001190 are possible. However, it is important to note that a move below the 200-day EMA could invalidate the bullish thesis.
In conclusion, Shiba Inu’s recent rally in price can be attributed to the positive sentiment in the overall crypto market, the upcoming Shibarium mainnet launch, and positive on-chain activity. As the market continues to evolve, it will be interesting to see if the current upward movement in SHIB’s price will be sustained or if it is just a temporary bounce. Traders and investors should closely monitor these developments to inform their decision-making.
