Shiba Inu (SHIB) has seen a strong rally, surging 30% since hitting its August 5 low of $0.00001078. The meme coin now trades at $0.00001415, erasing losses from the early August crypto market downturn. This recent price action suggests that the cryptocurrency could be positioning itself for further upside.

Shibarium Expands with New Developer Tools

In a bid to strengthen its ecosystem, Shiba Inu’s Layer 2 chain, Shibarium, has introduced a toolkit for developers. This move seeks to attract builders to the Shiba Inu platform, in turn, expanding the utility of the network. Lucie, a marketing executive at SHIB, announced the launch of this comprehensive set of tools, which could spur innovation and growth within the Shiba Inu community.

Read Also: Shiba Inu Trading Spike Signals Potential Price Reset

On-Chain Data Signals Potential for Further Gains

On-chain data reveals that traders realized nearly $14 million in losses on Thursday, signaling possible capitulation. Historically, such events often precede a price rebound, as selling pressure wanes and a local bottom forms. Additionally, Shiba Inu’s Market Value to Realized Value (MVRV) ratio shows that the token is undervalued at -1.782%, down from 1.023% over the past 30 days.

Shiba Inu Momentum Indicator Points to Strength

The Moving Average Convergence Divergence (MACD), a key momentum indicator, is showing green histogram bars above the neutral line for Shiba Inu. This suggests that there is underlying positive momentum in SHIB’s price trend. However, traders should keep an eye on any changes in the MACD, as a cross below the signal line could indicate emerging negative momentum, potentially leading to a price correction.

Key Levels to Watch

If Shiba Inu faces a downturn, the $0.00001285 level remains a crucial support zone. This level has provided strong support throughout August and could act as a floor in the event of a pullback. As the altcoin continues to recover, traders will be watching these key levels closely to gauge the next move.