Shiba Inu Price Gets Extremely Overbought: Pullback Likely

Shiba Inu price has been in a strong bullish trend in the past few days as investors focus on the upcoming Shibarium launch. The SHIB token rose to a high of $0.000012, which was the highest level since November 3. It has surged by over 42% from the lowest point in 2022.

Shibarium launch ahead

Shiba Inu price has made a strong bullish trend as investors focus on the upcoming major change in the ecosystem. The main change is that Shiba Inu’s developers are building Shibarium as the network seeks to grow its ecosystem.

Shibarium will be a layer-2  blockchain that will solve some of the biggest challenges that exists in the ecosystem. Since Shiba Inu, Bone, and Leash exists in Ethereum, it has to cope with the inefficiencies in its platform. 

For example, Shibarium will have lower transaction costs and faster speeds. Presently, Shiba Inu transactions can add up to $100 in fees. As a layer-2 network, it will have speeds of over 2,000 transactions per second (tps). Also, it will make it possible for developers to build on top of the network. 

In a statement, they noted that the focus will be on non-fungible tokens (NFT), gaming, and the metaverse. Further, the network will also help reduce the amount of Shiba Inu tokens in circulation using burn features. The statement added that:

“All transactions on the network will have an implicit burn amount for $SHIB token. This will operate within the base gas fee of these transactions being utilized to burn $SHIB through our renewed Burn Portal.”

Shiba Inu price prediction

The daily chart shows that the SHIB price has been in a strong bullish trend in the past few weeks. It has jumped above the important resistance level at $0.000010, the highest point in December. The token has surged above the 25-day and 50-day moving averages. 

At the same time, the Relative Strength Index (RSI) surged to extreme overbought level. Therefore, the coin will likely pullback in the coming days. If this happens, the next key support level to watch will be at $0.0000010. A move above the resistance level to watch will be at $0.000012.