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Shiba Inu Price Drops 11% Snubbing Layer 2 Beta Launch News –

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Shiba Inu price turned down during the early Asian trading hours on Thursday as bears focused on dimming the meme coin hype that saw SHIB explode more than 20% on Wednesday. The dog-themed token is down 11% in the last 24 hours. It was expected that the news on the launch of the ecosystem’s Shibarium Layer 2 protocol would propel the price higher, but investors prefer taking profits instead. 

Having shattered the stubborn resistance at $0.00001, the SHIB Army needs to get the barriers at $0.000012 and $0.000014 out of the way to achieve a sustained recovery. 

How Will The Shibarium Layer 2 Protocol Affect SHIB Price?

The crypto community expects Shiba Inu’s upward trajectory to continue in 2023 fueled by the launch of the Shibarium Layer 2 protocol. 

Through a January 15 blog post, the development team informed the Shiba Inu community that the beta version of the ecosystem’s Layer-2 network “is about to be launched” asking them to remain patient to allow for the protocol to be built appropriately. 

Part of the blog statement read:

We ask the community to please understand that this phased release is not a matter of when but a matter of developing Shibarium correctly and introducing it responsibly. Avoid asking when, because the answer will always be a ‘soon’. Yet with that being said we are approaching the finishing touches for Shibarium’s Beta and its imminent launch.

According to the blog, Shibarium is designed to “provide faster transaction times, lower fees and an expanded development framework for the Shiba Inu Ecosystem.” Layer 2 protocols work on top of existing blockchain networks facilitating off-chain processing of faster, cheaper, and more secure transactions while maintaining reliance upon the security of the underlying blockchain.

Therefore, as a Layer 2 protocol, Shibarium will work like Arbitrum to “provide the benefits of scalability” playing a big role in scaling Shiba Inu as a blockchain while sustaining the link to the Ethereum network.

Although developers maintain that Shibarium is not “a price pumping tool,” analysts and the SHIB Army expect Shiba Inu price to rally following its release.

Can Shiba Inu Price Revisit $0.000017?

Shiba Inu price bounced off the $0.0000080  support floor on January 1 to stage a 61% ascent to Wednesday’s high around $0.00001295. The rally saw the SHIB price print green candles forming a series of higher highs and higher lows rising above significant resistance levels. 

At $0.00001117 SHIB sits on the 50-day Exponential Moving Average (EMA) (in red) at $0.0000093, the $0.00001 psychological level, and the 100-day EMA (in blue) at $0.0000096. 

At the time of writing, SHIB was fighting immediate resistance from the 200-day EMA (in purple) at $0.0000114. It is essential for Shiba Inu price to produce a daily candlestick close above the said supply level to keep the uptrend intact ahead of a possible breakout from the falling trend channel. 

As such, increased buying pressure from the current level could see the DOGE-killer break past this hurdle to confront resistance from the barriers at $0.000012 and $0.000014. Above that, a rise toward the $0.000017 resistance level would be the next logical move. This would bring the total gains to 53% from the current levels. 

SHIB/USD Daily Chart

TradingView Chart: SHIB/USD

The value of the relative strength index (RSI at 85 reinforces the optimistic outlook bulls see in Shiba Inu price, as it ascends deeper into the overbought region. The directional movement index (DMI) also validated Shuba Inu’s upward outlook. The positive directional line (+D1) at 39 was way above the negative directional line (-D1) at 3 suggesting that the SHIB’s uptrend was very strong. 

Conversely, the position of the RSI in the overbought region suggested that the Shiba Inu price was massively bought. This implies that the bullish momentum may soon run out of steam, pointing to a possible correction in the near term.

As such, Shiba Inu could turn down from the current price, losing key support levels starting with the $0.00001 demand level. Extreme selling pressure could lower the price below the 100-day EMA at $0.0000096, the 50-day SMA at $0.0000093, or the $0.0000080 support floor.

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