Shiba Inu (SHIB) traded to lows of $0.0000072 before bouncing to $0.0000087.
Declines for SHIB came amid wider crypto sell-off as Bitcoin fell to lows of $25,600.
SHIB price could recover to the psychological $0.00001 or see fresh declines to major support levels.
Shiba Inu’s native token SHIB has plunged to July lows, trading to lows of $0.000000726 after a sharp 20% drop. SHIB price was down over 30% in the past week as of 8:30 am ET on Friday morning.
The token’s sharp decline follows a broader market sell-off that also saw Bitcoin flash crash to $25,600 and Ethereum to $1,570. However, for Shiba Inu, the dump had another catalyst.
Sell-off came at a time the SHIB army – a passionate community of SHIB holders – was looking to navigate a major setback related to the cryptocurrency’s layer-2 network Shibarium. Meanwhile, the data shows a total of over 97 million SHIB have been burnt in the past 24 hours.
Shibarium hit snag shortly after launch
Shibarium, a fork of Polygon, launched to much hype on Wednesday, with the community celebrating a key milestone as the layer-2 network brought new functionality set to transform the Shiba Inu ecosystem.
But that enthusiasm hit the rocks shortly after, with the L2 going offline amid what the team says was an unprecedented traffic. The latest update from the team has nonetheless provided optimism for a swift reboot, more so after it was revealed Shibarium was getting help from major players within the ecosystem.
Developer Kaal Dhairya has also assured users that the $1.7 million in user funds locked in the ETH bridge as the blockchain went into “fail safe” mode were “safu.” Although its unclear when the Shiba Inu L2 platform reboots, the community’s response to today’s update has seen SHIB price turn just green as seen on the 24-hour time frame.
SHIB price outlook after Shibarium setback
The 4-hour chart below shows SHIB has bounced from lows of $0.00000726 to intraday highs of $0.0000087.
Shiba Inu price on 4-hour chart. Source: TradingView
This area however represents a previous resistance zone, which suggests the SHIB army might have to dig in push further to bounce to the psychologically important $0.00001 level.
Otherwise, more downside will follow as the 4-hour RSI remains below 50 to indicate strength still lies with the bears. In this case, the key areas to watch on the downside are $0.000008 and $0.0000075.
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