- Shiba Inu announced plans for a Shibarium relaunch days after botching the initial launch.
- SHIB’s price is moving inside a bullish pattern.
- However, bearish pressure against the meme token remained strong.
NEW DELHI (CoinChapter.com) — Meme token Shiba Inu has announced its plan to relaunch its much-hyped layer-2 blockchain platform Shibarium, claiming that the team was “almost ready to reopen.”
The need to relaunch arose after the project’s initial launch glitched due to network issues and a faulty network bridge. Hours after the mainnet went live on Aug 16, the network’s bridge started experiencing major issues.
The glitch resulted in about 956 ETH (nearly $1.7 million) and $750,000 worth of BONE tokens getting stuck in the Shibarium bridge contract, per blockchain security firm PeckShield.
In an Aug 22 blog post, Shiba Inu’s lead developer Shytoshi Kusama claimed Shibarium was ready for launch following two days of testing. Kusama explained that developers added a new monitoring system for validator data and a few other updates to ensure smoother operation.
Furthermore, the Shiba developer claimed that additional failsafe, including rate limiters at the RPC level and auto server reset. In detail, RPC refers to a Remote Procedure Call node, a system that bridges dApps with the blockchain.
Next, more validators would go live on the blockchain, giving users more avenues to stake their BONE tokens.
Shiba Inu Has Disproved FUDs, Says Kusama
Additionally, Kusama addressed the “fudders“— users spreading fear, uncertainty, or doubt about the SHIB token or the Shiba ecosystem.
The Shiba Inu lead developer noted that the Shibarium launch, glitched though it was, did disprove the FUD about the blockchain layer ever coming to life.
Moreover, Kusama noted that the recently released “SHIB Paper” to quash the FUD that the lead Shiba Inu developer was not focused on decentralization. The SHIB Paper is an abridged document that lists the key ideas behind SHIB’s decentralization.
The document defines the “Shiba Inu State” as a medium for collective prosperity, claiming:
In a world gravitating towards decentralization and empowerment, the Shiba Inu State emerges as a beacon, interweaving digital tenets with tangible community values
Kusama claimed the SHIB Paper as “the most comprehensive decentralization document the world has ever seen.”
Shiba Inu Price Moving Inside Bullish Pattern
Meanwhile, Shiba Inu price is moving inside a bullish technical pattern called the ‘Falling Wedge.’
In detail, the technical pattern forms when the price fluctuates inside a pair of falling trendlines that would converge down the slope. The outcome of such downside patterns is typically a price breakout to the upside.
One key feature of the pattern is that volumes usually decline as the trendlines converge.
The upside target for the breakout is equal to the maximum distance between the falling wedge’s upper and lower trendlines. Per the rules of technical analysis, if the wedge pans out, Shiba Inu price might spike by nearly 205% to reach $0.000024 after confirming the pattern.
SHIB Price Drops Over 22% In A Seven Days
However, despite news of Shibarium’s relaunch, SHIB price action remained in the bears’ control. The memecoin’s price fell over 22% from Aug 16’s high of $0.00001024. After staging a recovery immediately after the Aug 17’s market plunge, SHIB price started to decline again as traders booked profits.
If the selling pressure increases, SHIB’s price might drop to the resistance near $0.0000077. Moreover, failure of the immediate support level might force the Shiba Inu token price to drop to the support level near $0.0000072 before recovering.
However, a successful launch of Shibarium is likely to push SHIB prices upwards, helping SHIB reach the 100-day EMA (blue wave) and 50-day EMA (purple wave) resistance confluence near $0.00000864.
Additionally, flipping the immediate resistance could help SHIB price target the 200-day EMA (green wave) resistance near $0.0000093 before corrections pare gains.
The RSI for SHIB remained neutral, with a value of 40.3 on the daily charts.