Shiba Inu (SHIB) Price Poised for a Breakout as Liquid Staking Goes Live
SHIB price jump 12% upon K9 Launch. Will it make a breakout above its horizontal resistance?
Key Takeaways
- Shibarium activity surged 1,000% after K9 DAO’s launch.
- SHIB price increased 12%, hovering around $0.000014.
- The total value locked in Shibarium reached $850,000.
Shibarium, Shiba Inu’s layer-2 network, saw a massive surge in activity following the launch of K9 Finance DAO’s Bonecrusher protocol on Sept. 19. Key metrics like transaction fees, new transactions, and completed BONE transfers rose sharply, with fees increasing by over 1,000%.
The price of Shiba Inu (SHIB) rose by 12% in the past two days but is now hovering around $0.000014. Will the upward momentum persist, leading to higher prices?
K9 Finance DAO Launch
K9 Finance DAO is a decentralized autonomous organization (DAO) designed to enhance Shibarium, Shiba Inu’s Layer-2 network. It focuses on boosting Shibarium’s utility by introducing DeFi protocols like Bonecrusher, which enable users to use a liquid staking solution. The DAO governs the $KNINE token, allowing the community to directly say in protocol decisions.
The SHIB token benefits from K9 DAO through increased network activity, leading to higher transaction volumes, smart contract deployments, and a more vibrant ecosystem. As K9 DAO projects integrate deeper into Shibarium, the demand for SHIB rises, improving its utility and adoption.
Upon K9 DAO’s launch, key metrics saw explosive growth: network fees surged by 1,000%, transaction volumes increased significantly, and the total value locked (TVL) in Shibarium reached $850,000. Developer interest also spiked, with a 333% jump in smart contract creation.
These figures highlight the rapid adoption and success of K9 DAO’s initiatives in Shibarium’s ecosystem.
Shiba Inu Price Analysis
On March 4, Shiba Inu surged to $0.000045, marking its highest price since November 2021, a 400% jump from its February low. However, by April 13, it retraced 60% to $0.000018. A 52% rebound followed at the 0.618 Fibonacci level, but bearish trends continued.
By May 29, SHIB reached $0.000029 before another downturn led to a July 5 low of $0.000012. Despite a rapid bounce and 37% recovery, SHIB’s RSI hit oversold levels.
A minor recovery was seen but was short-lived, resulting in another lower low of $0.000010 on Aug. 5. It quickly snapped back and closed the daily candle at $0.000012, a level that served as horizontal support on Sept. 6.
We saw positive price movement from Sept. 18, resulting in a breakout above the descending channel. Considering that the price entered a horizontal range, this isn’t as significant as a breakout from this horizontal range would be.
This is why if the price continues moving upward and surpasses its previous high of $0.000015 we could receive a signal of the starting bull phase.
SHIB Price Prediction
Looking closely at the hourly chart, we can see that there is a small chance that SHIB started an uptrend on Sep. 6. With its first two sub-waves already developed it is now striving in its wave 3.
To confirm this assumption, we need to see further advancement to the 1.618 Fib level. This matches the resistance from the horizontal range. Its surpassing will signal a starting bull phase, as one more high to $0.000017 would mean SHIB formed a five-wave pattern.
However, even if this happens, in order to receive a stronger confirmation, we need to wait and see what happens at the following retracement, meaning that the SHIB price should form a higher low. Only after clearing this can we expect a more significant price surge past the $0.000015 area in a sustainable way.
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