- Shiba Inu is up 50% for the week.
- Shiba Inu-Unification Strategic Partnership.
- Ethereum whales are driving price action.
Shiba Inu is one of the coins leading a recovery in the broader cryptocurrency market. After a 70% pullback from all-time highs, the crypto named after a cute furry Japanese hunting dog breed has continued to outperform the overall market. The crypto is already up by more than 50% for the week.
SHIBUSD technical analysis
After initially plummeting to four-month lows of $0.00001723, SHIBUSD has bounced back as traders continue to jostle for positions, with the meme coin appearing to be trading at a discount. A bounce back to highs of $0.00003205 puts the crypto gains to more than 50%.
In the medium term, SHIBUSD faces short-term resistance near the 0.00003445 level above which it could break out to highs of 0.00003942, the next substantial resistance level. On the flip side, a drop below the 0.00002950 level could leave the pair susceptible to further losses back to lows of 0.00002534 areas.
SHIBUSD’s recent bounce back mirrors a recovery in the broader cryptocurrency market that has seen most coins bounce back after a deep pullback. Bitcoin and Ethereum spearheading the recovery continue to fuel confidence that a recovery is in play following the past few months of sell-offs.
In addition to the broader industry recovery, SHIBUSD’s upward momentum is also supported by a number of factors. The addition of new projects on the Shiba Inu network is one of the factors driving the upward moment on the meme coin.
Singapore-based blockchain solutions provider Unification has already confirmed it is working with the Shiba Inu community to develop Shibarium. The layer-2 blockchain solution built on Ethereum enhances trading and other transactions on the Shiba Inu ecosystem. Consequently, Shiba Inu will handle rapid, low-cost transactions optimized for gaming.
In addition, Shiba Inu coin has also partnered with Welly’s, a burger restaurant. The strategic alignment will see the restaurant chain handle SHIB payments while also integrating non-fungible tokens and Shiba Inu’s blockchain.
Ethereum whales buying Shiba Inu in numbers is another factor helping drive SHIBUSD price action higher. An attractive price of less than a penny is making the meme coin more beautiful on the risk-reward front compared to other coins trading for hundreds or even thousands of dollars.
Ethereum Whales Factor
While Ethereum is down by more than 20% from its record highs, it is still trading for more than $3,000, making it quite expensive for people who would like to gain exposure in the burgeoning segment. This is not the first time Ethereum whales have played a role in driving SHIBUSD price higher. Last October, they bought 277 billion of SHIB coins, all but helping fuel an upward momentum.
Growing expectations of Shiba Inu’s widespread adoption is also helping drive SHIBUSD price higher. There are already talks that Robinhood could soon list the digital token, which will shine more light and exposure on the meme coin to the investment community. The unveiling of the Shibarium Layer 2 solution to enable trading on the network as well as low-cost, fast transaction is another factor that could help fuel the coin’s adoption.
An emerging metaverse opportunity could also be fuelling investor attraction to Shiba Inu. The coin is not late into the party as a gaming coin. The signing up of gaming developer William Volk is one factor that continues to affirm the coin prospects around the metaverse.
Recent reports have indicated that developers are working on the Shiba Inu metaverse dubbed Shiberse, previously referred to as Oshiverse.