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Shiba Inu (SHIB) has recently shown notable resilience, rebounding to $0.000017 after a significant dip. After a strong rally in the first quarter of 2024, many altcoins, including Shiba Inu (SHIB), have significantly declined from their March highs. Despite recent gains, Shiba Inu faces critical challenges as it attempts to sustain its recover
After reaching a monthly low on July 5, 2024, at $0.000012, Shiba Inu rebounded by 30%, climbing to $0.000017 by July 9. This surge can be attributed to improved investor sentiment following the release of dovish Non-Farm Payroll (NFP) data by the US Bureau of Labor Statistics. There has been a 27% decrease in SHIB’s trading volume in the last two days after its recovery from $36.46 million on July 7 to $26.3 million on July 9. This fall in trading volume while the prices recover is often an indication that more confidence needs to be built around the sustainability of the uptrend.
At present, Shiba Inu is confronting a substantial resistance level at a $0.000020 price point. Technical signals indicate that this hurdle will be hard to surmount for now. The double-top pattern about this degree signifies strong bearishness, and Bollinger Bands (BB) imply SHIB is still trading under the middle band pointing towards further downward pressure.
The Bollinger Bands show SHIB has remained below the middle band ($0.000016887), reflecting a sustained bearish trend. Additionally, recent price activities of SHIB have had a tough time penetrating through the 23.6% Fibonacci retracement level standing at $0.000018748 which serves as a significant resistance region above it for sure if successfully breached this would invalidate any bearish bias and indicate potential recovery.
The key support levels to watch out for are marked at $0.000015026 and $0.000014000 respectively while breaking beneath these could result in further downside moves even towards retesting last week’s lows again but keeping them intact is crucial to stabilize SHIB’s value by averting further sell-off.
This volatility has particularly affected meme coins like Shiba Inu across the market within recent times with other external factors also influencing sentiment among investors including major holders’ large-scale liquidation or reactions of markets towards macroeconomic data such as Germany’s transfer of 16k BTC via exchanges & market makers adding downwards force on SHIB recently.
Given the current technical setup and market conditions, several potential scenarios could unfold for Shiba Inu: Bearish continuation could be set if SHIB fails to overcome the $0.000018748 resistance trading volume continues to decline, and the price could face further bearish pressure. Key support levels at $0.000015026 and $0.000014000 will be critical to watch. A break below these supports could lead to a retest of the recent lows around $0.000012.
For SHIB to undergo a bullish reversal, it must first conquer the resistance area located at $0.000018748 followed by the $0.000020 level afterward this would require significant trading volumes and more market-wide cooperation in terms of buying activity for such a move is even possible Overcoming 20-day SMA ($0.00001697) as well as 38.2% Fibonacci retracement level ($0.00001912) serves as additional confirmation of an uptrend possibility.
With the present technical setup, Shiba Inu’s price is likely to face large hurdles ahead if it is to keep its latest gains intact while there has been a drop of 28% in trading volume which signifies the cautiousness of traders to a possible downturn towards about 15%.
