Shiba Inu price hit its highest level since early November on Wednesday. This came as investros digested news over the forecast launching of its Layer 2 network, Shibarium. Besides, hopes over the easing of the Fed’s aggressive monetary policy has improved the market sentiment. Even so, the crypto industry remains under pressure ahead of the February Fed meeting.
What’s driving the market?
Since the start of 2023, top cryptocurrencies have recorded significant recovery from the crypto winter that shaped the market for the better part of 2022. Notably, a hawkish Fed and FTX-related contagion concerns were largely behind the experienced risk aversion.
Fast forward to the new year and investors are hopeful that the Fed will soon ease on its aggressive monetary policy. Besides, Shiba Inu and other major cryptocurrencies are on recovery from the FTX-triggered fears.
At the same time, the meme coin found support in recent news regarding the upcoming beta launch of its Layer 2 network, Shibarium. Through the new platform, developers will be in a position to work on their projects via flexible terms and conditions.
Even so, the cryptocurrencies are not out of the woods yet. The crypto fear & greed index dropped from a neutral level of 52 back to the fear end of the spectrum with a reading of 45. The index tracks the major emotion driving the market.
In the second half of the year’s first month, investors will remain keen on the Fed meeting scheduled for 1st February. Signs that the Fed may slow on its interest rate hikes may further boost SHIB/USD.
Shiba Inu price prediction
Since the beginning of 2023, Shiba Inu price has risen by about 40% as signs amid hopes that the crypto winter is easing. Indeed, as at Thursday’s session, the crypto had only recorded four sessions of losses year-to-date. On Wednesday, it rose by over 20% to its highest level since 6th November at 0.00001296. As at the time of writing, it had pulled back to 0.00001113.
Even with the pullback, SHIB/USD has continued to trade above the 25 and 50-day exponential moving averages. In the past weekend, it formed a golden cross with the 25-day EMA crossing the 50-day EMA to the upside. Based on both the fundamentals and technicals, I am cautiously optimistic on Shiba Inu price in the short term.
The range between the psychological level of 0.00001000 and 0.00001150 will be worth watching in the ensuing sessions. With further improvement of the risk sentiment, the bulls may gather enough momentum to break the aforementioned resistance level towards its next target at 0.00001250. For as long as the altcoin remains above the support level of 0.000000900, this bullish thesis is valid.