- Shiba Inu layer-2 scaling solution Shibarium developers recently shared an important update.
- The developer community states that BONE is the only token from Shiba Inu ecosystem that will be used by layer-2 protocol.
- Technical experts have warned the community that Shibarium has been developed for SHIB ecosystem, not for other projects claiming ownership.
Shiba Inu ecosystem’s developers have warned the community against other projects that lay claim to the layer-2 scaling solution Shibarium. Developers assured the SHIB army that the scaling protocol will use Bone (BONE) from the Shiba Inu ecosystem and will scale the dog-themed cryptocurrency, no other projects included.
Shiba Inu developers warn the SHIB community against false Shibarium narratives
Shiba Inu, the second-largest meme coin in the cryptocurrency ecosystem, will soon benefit from the launch of its scaling protocol Shibarium. This is the layer-2 scaling solution that will utilize BONE from the Shiba Inu ecosystem, and scale the $4.9 billion meme coin project.
Developers have warned the SHIB army to watch out for projects and tokens that claim ownership of the Shibarium protocol and its utility. Technical experts wrote:
Furthermore, and to make it strictly clear: Shibarium has been developed for @Shibtoken and not for the sake of other projects who claim ownership or speculation surrounding its operability dependency on any other tokens.
SHIB ecosystem’s technical experts ask the SHIB Army to stay alert to official information via social media and blog portals.
As the community awaits an update on Shibarium launch and the release date of the layer-2 protocol, the Dogecoin competitor continues to rank among the top cryptocurrencies held by whales.
SHIB is a favorite among 500 largest Ethereum whales
MOST USED smart contracts for the top 500 biggest #ETH whales today— WhaleStats (tracking crypto whales) (@WhaleStats) January 6, 2023
4️⃣ $COMP @compoundfinance
5️⃣ $NMR @numerai
6️⃣ $CRV @curvefinance
7️⃣ $BOBA @bobanetwork
9️⃣ $CVX @convexfinance
$SHIB @Shibtoken pic.twitter.com/llFyTjHtiN
When large-wallet investors scoop up Shiba Inu tokens or engage in transactions worth $100,000 or more, it helps traders determine the direction of the SHIB price trend. Typically, whale activity has been the key to the direction of Shiba Inu, also known as the Dogecoin killer.
As seen in the chart below, SHIB whale transactions (>$100,000) spiked before a decline in Shiba Inu price. This can be interpreted as profit taking by whales. After scooping up the meme coin at a discount through the dips in the ongoing cycle, large-wallet investors engage in mass profit-taking at SHIB’s local price high, following which the asset’s price declines.
Shiba Inu whale transaction count
Therefore, it is key to observe the trend in Shiba Inu’s whale transaction count to predict the direction of the Dogecoin killer’s price.
Whales from the Ethereum network are scooping up the meme coin and there is an increased likelihood of profit-taking from whales around a local hike in SHIB’s price.
Where is SHIB headed with rising interest from whales?
SHIB is in a long-term downtrend and the meme coin’s 50-day Exponential Moving Average (EMA) is currently acting as support for the asset. The 200-day EMA is acting as resistance at the $0.00000856 level.
Relative Strength Index (RSI), a momentum indicator, is back in the neutral territory signaling that the asset was oversold at $0.00000856. SHIB is likely to plummet to support unless bulls produce a close above the trendline on the 4-hour chart.
SHIB/USD price chart
Key support and resistance for SHIB lie at the $0.00000818 and at the 50-day EMA from the daily chart at $0.00000881 respectively. A close above the trendline could invalidate the bearish thesis and signal the end of the Dogecoin killer’s downtrend.
Shibarium launch could therefore trigger a rally in the meme coin, followed by mass-profit taking by whales that are currently scooping up SHIB token.
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