While the broader crypto market has been trending sideways for the past 24 hours following its stellar rally over the past two weeks, Shiba Inu (SHIB) is bucking the trend, posting a whopping price of 21%. The trading volume of the meme coin has exploded by 150% to $810 million in the past 24 hours.
A look at the 1-day chart reveals that Shiba Inu price approached the lower end of the key resistance zone at $0.000013, but was initially rejected. At press time, SHIB was trading at $0.00001254, hitting early November highs.
To trigger a sustained bullish breakout on the daily chart, SHIB must break above the $0.000014 level. For now, however, a corrective move – whether in time or price – seems more likely as the RSI is in overbought territory at 86.7.
The 1-week chart shows that SHIB managed to break out of a 1-year downtrend when price broke the rising trendline last week. With the daily chart pattern, a retest of this trendline might be possible to create further bullish momentum going forward.
Reasons for the Shiba Inu Price Rally
The rise in Shiba Inu (SHIB) price comes after Korean crypto exchange UpBit announced that it had listed the popular meme token. According to announcementSouth Koreans can now buy Shiba Inus directly with Korean won.
Upbit was the 22nd largest crypto exchange by spot trading volume in the past 24 hours. Also yesterday, SHIB was also listed on Cointree, an even smaller exchange by trading volume.
Therefore, a more likely reason for the pump could instead be the launch of the Shibarium layer 2 scaling solution. As recently as Monday, developers published a new blog post promising an imminent launch in a few weeks.
Shibarium could be a massive bullish catalyst for Shiba Inu. With a market capitalization of $6.8 billion, it will be the second largest layer 2 solution, while bringing a lot of value to the ecosystem with its own DEX, NFT, metaverse and stablecoin.
Recently, the BONE token has already caused a buzz with massive volatility. BONE is the governance token of ShibaSwap, a decentralized exchange launched in July 2021. It is also worth noting that BONE will be used to pay for gas, while SHIB will be burned with base gas fees.
Additionally, Shiba Inu will introduce a new reward token – TREAT. Many details are yet to be known, however, it will likely be used in ShibaSwap, Shiba Metaverse, Trading Card Game, and as a validator reward.
Finally, the Shiba Inu metaverse is planned for 2023. Here the tokens of the Shib ecosystem will meet and 100,595 lots will be for sale (similar to The Sandbox multiverse).
Featured Image by Ferhat Deniz / Unsplash, Charts from TradingView.com