Can Shytoshi Kusama’s plan to revive Shibarium undo Shiba Inu price losses?
- Shiba Inu’s much-awaited Layer 2 solution, Shibarium, has hit a brick wall after its launch on August 16.
- The lead developer of Shiba Inu added in a recent blog post his ideas on reviving Shibarium.
- SHIB price continues to reel from losses after the sudden sell-off on August 17.
Shiba Inu enthusiasts and supporters were disappointed when Shibarium paused block production after its launch on August 16. Shortly after that, rumors started circulating about how the developers messed up, causing millions of Ethereum (ETH) to be stuck on the blockchain. In a recent blog, Shytoshi Kusama, the lead developer of Shiba Inu, updated plans on how the Layer 2 scaling solution Shibarium will move ahead.
Shiba Inu faces hurdles, but lead developer promises a smooth sail
Shiba Inu, a popular meme coin, was at the center of rumors when its Layer 2 scaling solution Shibarium stopped producing blocks after its launch on August 16. The alleged rumors were that millions of dollars worth of Ethereum (ETH) was stuck on the newly launched Shibarium blockchain. But Shytoshi Kusama, the lead developer and co-founder of Shiba Inu, penned a blog on August 18 addressing these rumors. The anonymous developer stated that the screenshot circulating was “fake” and had “caused incredible harm to our state.”
The founder added that the $2 million stuck on the Shibarium chain are safe and insured. Should the chain restart by any chance, affected users will be reimbursed.
In the latest update on August 19, Kusama notes that the Shibarium blockchain has restarted and is still being tested. The Shibarium team works closely with other professionals to improve the current process. In this regard, the blog states,
“We spoke to the incredible Alchemy team and they have scaled operations for Shibarium 1500%. We have worked with the decentralized team and validators to scale the server infrastructure by 1500% with top-notch metal infrastructure.”
SHIB price stuck with losses
SHIB price slid 37% from its recent top of $0.0000114 to a low of $0.00000713. Interestingly, the recent markekt crash knocked Shiba Inu price down to retest the June 18 swing low. While this level provides support, investors must pay attention to the $0.00000904 hurdle for now.
A recovery above this level that flips it into a support floor will be a crucial buy signal. The three-day Relative Strength Index (RSI) currently sits at the mean level of 50, which suggests that bulls and bears have an equal chance of regaining control.
If the Shiba Inu price manages to hold above the said level and the bulls take control, SHIB could trigger a near-30% rally to tag the next meaningful hurdle at $0.0000117.
SHIB/USDT 3-day chart
On the other hand, if Shiba Inu price fails to recover above the $0.00000904 hurdle, it could signal that the bears are still in control. In such a case, SHIB could revisit the June 18 swing low at $0.00000713.
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Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
