Shiba Inu gears for recovery as DOGE, PEPE and BONK struggle in meme coin market

• Shiba Inu announces improved liquidity pools on Shib.io, reducing the time needed to add liquidity to the SHIB ecosystem (first bullet)
• Meme coins Dogecoin, Pepe and Bonk struggle to recover after a week-long decline and nearly double-digit losses. 
• SHIB price is down 1.2% on Friday, eyes 11% gains to test resistance at $0.00001709. 

Shiba Inu (SHIB), the second-largest meme coin in the crypto ecosystem, made a key announcement on Friday. New and improved liquidity pools on Shib.io are expected to improve the user experience and drive higher adoption among traders in the SHIB ecosystem. 

Dogecoin (DOGE), Pepe (PEPE) and Bonk (BONK) continue to struggle on Friday after near-double-digit declines in the past seven days. Data from CoinGecko shows that DOGE, PEPE and BONK erased between 10% and 16% of their value in the past week. 

Shiba Inu’s announcement, what to expect

Shytoshi Kusama, the lead ambassador of the Shiba Inu meme coin ecosystem, announced the launch of new liquidity pools on Shib.io. Kusama posted on X regarding the improvements that users can expect and how the development has helped streamline the user experience. 

Optimization of Shib.io’s backend assures traders of faster transactions and smarter filtering based on Total Value Locked (TVL), volume and trends. With new insights from liquidity pools, traders are expected to identify and earn rewards for liquidity addition, which could drive trade volume higher in Shib.io’s top-performing pools. 

The team uses the term “lightning-fast” to describe liquidity pool transactions. 

Shiba Inu’s announcement could act as a market mover for the meme token, which has experienced nearly 6% losses in the past seven days. 

DOGE, PEPE and BONK continue to struggle and no significant signs of recovery are observed on Friday. 

Shiba Inu technical analysis

Shiba Inu is in a multi-month downward trend. The meme token trades at $0.00001527, at the time of writing on Friday. The Moving Average Convergence Divergence (MACD) indicator flashes green histogram bars above the neutral line, signaling underlying positive momentum in the SHIB price trend. 

The Relative Strength Index (RSI) reads 38 on the daily timeframe. 

SHIB could rally 20% to test resistance at the upper boundary of a Fair Value Gap (FVG) on the daily price chart, at $0.00001848. If there is a correction in SHIB and the token fails to rally, it could sweep liquidity at support of $0.00001388. The support level coincides with another FVG on the SHIB/USDT daily price chart. 

SHIB/USDT daily price chart | Source: TradingView 

Shiba Inu could revisit its February 3 low of $0.00001160 in the event of a flash crash in Bitcoin or a market-wide correction.