Shiba Inu onchain indicators are hinting at a potential uptick in price following the short period of consolidation it is experiencing.
After enduring a prolonged slump, Shiba Inu SHIB $0.000022 24h volatility: 2.5% Market cap: $13.12 B Vol. 24h: $492.55 M is showing signs of life. This comes as a developing double-bottom formation emerges on its daily chart. This is a classic bullish indicator that often signals a market reversal.
This has sparked mixed reactions in the crypto community. Some see it as the breakout SHIB investors have been waiting for, while others remain skeptical. They question if this pattern will provide enough momentum to drive prices up or if the token will face further decline.
Shiba Inu (SHIB) is holding steady near the $0.00002105 support level, which aligns with the 100-day Exponential Moving Average (EMA).
This critical threshold has held firm over recent sessions, suggesting a possible stabilization. However, if SHIB loses this level, it could drop to test the 200-day EMA near $0.00002054. This bearish trajectory could shake investor confidence.
For SHIB bulls, the double-bottom formation offers a glimmer of hope. This pattern suggests that breaking key resistance levels, starting with $0.00002350 at the 50 EMA could pave the way for massive price rallies.
SHIB/USDT Price Chart. Source: TradingView
The next significant hurdle lies at $0.00002585. Clearing both could trigger a remarkable 50% rally, pushing SHIB toward its recent highs of around $0.00003500. SHIB’s chart may look promising, but the market tells a different story. The token’s trading volume remains relatively low.
This has cast doubt on whether bulls have enough strength to overcome critical resistance zones. A rally without strong volume is like a car without fuel; it will not go far. For SHIB to confirm a reversal, a surge in buying activity is needed.
If SHIB can climb above $0.00002350 with a burst in volume, it will signal that bulls are back in control. However, if it falls below $0.00002105, the bullish setup could collapse, paving the way for further losses.
While the potential for a 50% rally is enticing, market participants must remain cautious. Traders are advised to monitor the asset’s volume closely and await clear signs of momentum before making decisive moves. For now, Shiba Inu’s double-bottom pattern hints at a fragile but promising recovery in an unpredictable market.
Shiba Inu’s price movement is not just about charts and patterns. It reflects the broader sentiment in the cryptocurrency market, where memecoins often act as a barometer for speculative interest.
A SHIB rally could reignite enthusiasm among retail investors and set the stage for broader gains in the memecoin sector. Beyond the charts, Shiba Inu’s ecosystem continues to expand.
This is largely driven by protocols like Shibarium, its Layer 2 scaling solution, and ongoing community-driven projects and updates. These developments add a layer of intrigue, suggesting that SHIB’s price is not just driven by hype but also by utility.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
