SHIB price is stuck in the red despite the reintroduction of the ecosystem layer 2 solutions protocol, Shibarium. Developers led by Shytoshi Kusama pulled the mainnet offline and later to private mode after it encountered scalability issues.
The botched initial launch had a noticeable negative impact on SHIB price – down 4% in seven days to $0.0000081. This bearish outlook has remained intact since Friday, although the crypto market is not in the best condition.
Shibarium Protocol Back On Track
The development team led by Kusama clarified that the challenges Shibarium faced stemmed from a “MASSIVE influx of transactions and users that happened at the same time when we announced that Shibarium is live.”
Moreover, this happened on the block explorer, with the primary protocol unaffected. Kusama denied the rumors of a bridge problem and that investor funds are safe. Following the relaunch, Shibarium is seeing block times of five seconds with processed transactions surpassing 100,000 and wallets approaching 45,000.
— Del Crxpto (@DelCrxpto) August 25, 2023
Other crypto platforms are starting to adopt Shiba Inu’s Shibarium protocol, for example, DEXTools. Shibarium is expected to be a game changer for the Shiba Inu ecosystem, where in addition to improving the network’s scalability, it will contribute to the token burn program while allowing for the trading of native tokens like BONE.
Hi $DEXT Community!
????⛓️ #Shibarium is here! ????????
— DEXTools (@DEXToolsApp) August 24, 2023
SHIB Price Down Trend Not Over
Shiba Inu is holding firmly to support at $0.000008 but appears to be hanging at the cliff’s edge amid the possibility of tumbling to $0.000005.
Indicators such as the Moving Average Convergence Divergence (MACD) and the Money Flow Index (MFI) reinforce the bearish outlook. The MACD in addition to the sell signal holds below the mean line (0.00) thus encouraging traders to seek exposure to SHIB shorts.
The MFI, which measures money flowing in and out of the SHIB market, shows that investors are not ready to buy the second-largest meme coin, perhaps until it has exhausted the downtrend and is ready for a rebound above $0.00001.
Support at $0.000008 is critical for the immediate resumption of the uptrend, but if broken, SHIB’s downtrend may carry on. Trading below this support means that bulls have lost all control, thus many investors would sell out of panic.
The initial support at $0.000007 would come in into play bolstered by the falling trendline. If push comes to shove, it would be prudent to prepare for a sweep through $0.0000062 and $0.000005 liquidity areas, where the previous sellers would be willing to buy.