NEW DELHI (CoinChapter.com) — Shiba Inu (SHIB) coin price has rallied nearly 80% year-to-date (YTD), thus turning out to be one of the best-performing crypto assets entering 2023. Nonetheless, its wild upside does not guarantee continuation owing to a mix of alarming fundamental and technical indicators.
Buy-the-Rumor Shiba Inu (SHIB) coin Rally So Far?
Traders have flocked to purchase SHIB tokens primarily due to its buzzworthy development plans in recent months, including the impending launch of its layer-2 blockchain solution built on the Ethereum mainnet, dubbed Shibarium.
Shiba Inu, a Dogecoin-meme token originally, aims to ward off the tag by adding developer-friendly solutions to its features. Of course, these announcements have enabled a new wave of buying momentum in recent months, furthered by supportive macroeconomic fundamentals, as discussed here.
So, SHIB had more than doubled its market valuation after bottoming out at $0.00000778 in December 2022, hitting $0.00001575 in the week ending Feb. 5, a five-month high.
But there is no confirmation on when Shibarium will go live. In a strange incident, Shiba Inu’s lead developer Shytoshi Kusama sent out a cryptic tweet hinting a Valentine’s Day launch for the layer-2 blockchain project.
Kusama later deleted the tweet, suggesting the launch had been delayed. CoinChapter couldn’t secure the tweet as a result. Hence, the rumor lives on alongside the SHIB price rally.
More Gains Ahead But…
Technically, on a larger timeframe, Shiba Inu’s long-term bias remains skewed to the downside.
In detail, the SHIB price eyes a pullback upon testing $0.00001793 as its resistance level (marked as an “S/R flip” in the chart below). A similar scenario in August 2022 prompted the price to decline more than 50% afterward, suggesting a higher selling pressure near the $ 0.00001793 resistance.
Such a pullback could have SHIB eye its prevailing ascending trendline support as interim support. Roughly, the coin could form bearish wicks toward $0.00001, a historic support line, by March 2023, down about 30% from current price levels.
Conversely, a concrete Shibarium launch announcement may stall the pullback setup. However, given the SHIB has rallied too much on the rumor, the coin may start falling back toward the said downside targets after the L2 blockchain launch — a sell-the-news event.
The post Shiba Inu Coin Braces for Incoming 20-30% SHIB Price Crash by March 2023 appeared first on CoinChapter.