The last 24 hours saw the price of the Shiba Inu token record a rise of 5% as it touched the $0.00001088, with the crypto market recovering from the selloff that had occurred earlier in the week.
The current price of the SHIB token shows that it has recorded a weekly decline of 1% and a 15% drop in the last 15 days, even though it has recorded gains of 34% since the beginning of the year.
Upwards correction
Considering that the SHIB token has recorded losses in the previous month, it is now positioned for an upwards correction above-average.
This possibility is also boosted by the fact that the Shibarium layer-2 solution is scheduled for a public launch in the next month.
In addition, the end of the year would also see the potential launch of SHIB: The Metaverse and this is something that is expected to give a massive boost to the price of the Shiba Inu token.
While the SHIB token has recorded losses recently, there is a silver lining; the indicators are now in a promising position because they show signs of a recovery rally.
The indicators
To begin with, the relative strength index (RSI) of the Shiba Inu token is close to 50, after it had been in an oversold position since the beginning of this month.
Furthermore, the 30-day moving average is also hitting bottom as compared to its 200-day moving average and once it does bottoms out, it is likely that a bounce in the price would become due.
But, it is difficult to predict if the price of the SHIB token would be able to break past the resistance level of $0.000011 because the wider crypto market remains unsettled.
This is in light of the Securities and Exchange Commission (SEC) threatening Coinbase and the Commodity Futures Trading Commission (CFTC) taking legal action against Binance.
Other factors
On a number of occasions in March, the price of the canine-themed meme token has struggled to break past this resistance level.
This implies that if SHIB is able to rise to $0.0000115, or higher, then there could be further rises recorded in its price.
The ongoing release of Shibarium could certainly help the token in this regard, as it is already available in its beta version and a full launch is expected in the next month.
A positive sign in terms of Shibarium is that more testers have become part of its beta phase after its coding documents received an update, which indicates that there is strong interest in the layer-2 network.
Once it is fully launched, it is expected to give a strong boost to the efficiency of the Shiba Inu network, increase its throughput and also reduce transaction fees.
Moreover, it would also increase the Shiba Inu burn rate and this is a bullish move because its market supply will be squeezed and this could potentially boost its price.