Shiba Inu (SHIB) Price Declines Following Shibarium Launch: Key Support Holds the Answers
The Shiba Inu (SHIB) price has surged by 50% since reaching its yearly low in June, successfully reclaiming the $0.0000080 level.
However, a sharp downturn occurred last week, casting uncertainty over the previous advance.
Chart by TradingView
Shiba Inu (SHIB) Price Rebounds but Struggles to Break Out
Following its dip to $0.0000054 on June 10, the SHIB price embarked on a 50% increase. Furthermore, it regained the pivotal $0.0000080 horizontal zone.
This development carried significant weight as it signaled the invalidation of the preceding breakdown, highlighting the area's potential to act as a support once again.
Notwithstanding the rebound and uptick, the price remains below a descending resistance line established in September 2022. A breakout from this line is essential to validate a bullish trend reversal, potentially propelling SHIB by an additional 85% toward the $0.0000150 resistance threshold.
Shibarium Launch
The launch of Shibarium, the Shiba Inu layer-2 blockchain, took place on August 16. However, this debut was marred by multiple setbacks, including $1.7 million worth of ETH trapped on the Shibarium bridge.
Despite these challenges, the Shibarium team unveiled a $2 million insurance fund to reassure the community.
On the positive side, the price breached a descending resistance line on July 12, triggering an upward trajectory that propelled SHIB above the 0.5 Fib retracement resistance level at $0.0000103. However, rejection followed, leading to subsequent decline. The SHIB price now hovers near its pre-breakout levels.
Bottom Line: The forthcoming SHIB forecast hinges on whether the price remains above the $0.0000080 region or retreats within it. A rebound could translate into an 85% upswing, whereas a breakdown might initiate a minimum 25% descent toward the nearest support at $0.0000060.
