Shiba Inu (SHIB) Price Prediction: Shibtoshi Affirms Recent Surge Is Sustainable, But Acknowledges Correction Possibility

Dog-themed memecoin Shiba Inu (SHIB) recently defied market expectations, surging over 20% to a six-month high of $0.00002031 on September 28.

Shiba Inu (SHIB) soared on Friday, continuing its recent rally with a gain of over 20% in the past 24 hours. The memecoin reached a six-month high of $0.00002031, as upbeat sentiments and anticipation build within the SHIB community.

This uptrend comes amid broader positive movements in the crypto market, with several coins posting significant gains. SHIB's price increase is also attributed to several key developments within the Shiba Inu ecosystem.

Pseudonymous Shiba Inu proponent and SquidGrow founder Shibtoshi shared his optimism regarding SHIB's future in a recent Shib Daily interview. He attributes SHIB’s recent price surge to several key factors within the broader crypto market. This uptrend also stems from specific developments within the Shiba Inu ecosystem.

Shibtoshi highlighted positive sentiments around Shibarium, Shiba Inu’s Layer 2 scaling network, as a major factor influencing SHIB's price increase. The SHIB team designed Shibarium to reduce transaction costs and improve speed. Shibtoshi explained that this development enhances the ecosystem’s functionality, making SHIB more attractive to investors and developers.

Another key development adding to the ecosystem’s utility and attractiveness is Shiba Inu’s token burn mechanism, according to Shibtoshi. This process involves sending SHIB tokens to a wallet address where they become permanently inaccessible. It helps to create scarcity by reducing the quantity of tokens in circulation.

As CNF mentioned in a previous article, the SHIB burn mechanism has positively propelled the token’s price. Shibtoshi also noted the role of ShibaSwap, a decentralized trading platform, in enhancing Shiba Inu’s appeal.

As CNF noted earlier, ShibaSwap has been integrated into Shibarium. This integration expands ShibaSwap’s offerings by enabling the creation of new liquidity pools on Shibarium, thus facilitating easy token swaps across both platforms.

Other developments within the Shiba Inu ecosystem that are fueling bullish momentum include the growing importance of BONE and TREAT tokens. The TREAT token, with its L3 advantage, is anticipated to increase the Shiba Inu ecosystem’s utility by bringing new features and advantages.

Shibtoshi explained that the anticipation surrounding TREAT’s functionality has generated speculation and additional interest. Shibtoshi expressed optimism regarding the sustainability of Shiba Inu’s recent price surge.

He pointed out technical analysis and indicators that can help SHIB sustain its uptrend, including moving averages, Relative Index Strength (RSI), and the Bollinger Band. However, he also noted the possibility of a price correction for SHIB and stated that critical resistance levels and Fibonacci retracements will show where SHIB will face a challenge.

Despite these recent gains, SHIB is currently experiencing bearish movements. At the time of writing, the memecoin’s price has dropped by over 2% in the past 24 hours, trading at $0.00001607 with a trading volume of $487 million, indicating a decrease of 40.9% in the past 24 hours.

On the technical front, SHIB trades slightly above the daily chart’s 100 Exponential Moving Average (EMA). If this critical support level is breached, the memecoin may face further downward movement, driving the price to a much lower threshold.

The 50 EMA is the next key level below the 100 EMA but is rarely viewed as firm support during times of bearish movements. However, if the 100 EMA is broken, SHIB could quickly move toward the 50 EMA.

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