Shiba Inu price has pulled back in the past three days as the recent bullish momentum wanes. The SHIB/USD token was trading at $0.000013, a few points below the year-to-date high of $0.000015. It has jumped by more than 80% from its lowest point in 2022 as the golden cross pattern nears.
Shibarium launch is the catalyst
Shiba Inu, just as Dogecoin, was started as a joke cryptocurrency prices were surging. It was created to compete with Dogecoin, which was gaining strong momentum at the time. Today, Shiba Inu has a market cap of over $7.6 billion, making it one of the biggest tokens in the world.
Shiba Inu has been keen to move past its meme coin heritage. In the past few years, the developers have worked to expand the ecosystem and bring more utility to the network. One way they did that was to introduce Shibaswap, a platform that lets people swap tokens and earn rewards.
They are also building a metaverse platform that will see people play games and trade non-fungible tokens (NFTs). Therefore, as part of this transformation, the developers are now building Shibarium, which is the next big thing in the industry.
Shibarium is a layer-2 platform that aims to make Shiba Inu’s ecosystem much better and faster than it is today. A layer-2 network is a sidechain that handles transactions away from the main blockchain, in this case, Ethereum. It leverages the strength of Ethereum to do all this but it solves the key challenges of high transaction costs and slow speeds.
It is not yet clear when Shibarium will be launched. However, according to insiders, the layer-2 network will be launched in the first quarter of the year. I suspect that the SHIB price will rise toward this launch and then decline after it happens.
Shiba Inu price prediction
In my last Shiba Inu price forecast, I warned that the coin was getting extremely overbought and that a pullback was likely. This view was accurate. SHIB price jumped to a year-to-date high of $0.000015 on Saturday. This was also the highest it has been since August 16. It was also the upper side of the cup and handle pattern that has been forming. This pattern is one of the most reliable continuation patterns in the industry.
Shiba Inu is also about to form a golden cross pattern, where the 50-day and 200-day moving averages pattern make a bullish crossover. Therefore, if this crossover happens, we will likely see the coin’s price continue rising for a while.