Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- Shiba Inu wanted to flip the critical resistance level using a bullish trendline as support.
- On-chain metrics highlighted rising bullish sentiment.
Memecoins have benefited from increased market volatility in recent times. Pepe and BabyDoge were the second and third trending tokens Coinmarketcap in the past 24 hours.
Read Shiba Inus [SHIB] Price Forecast 2023-24
However, one of the most popular memecoins is Shiba Inu [SHIB] has not seen much bullish action with an important price level holding back significant gains. Can bulls turn this level around quickly and join the memecoin ride?
The main support for bulls is now a major hurdle
Source: SHIB/USDT on trade view
A look at the Shiba Inu price chart on the higher timeframes showed that the $0.00000807 resistance level was an important support level for bulls in January. The level acted as the price base for a remarkable rally to a yearly high of $0.0000157.
However, SHIB has since struggled with a bearish structure as traders move to more exciting memecoins. This led SHIB to a new low of $0.0000055 on June 10. While the bulls have recovered quite a bit from the low, a familiar price level has become a dragging factor.
The $0.00000807 level has rejected the bullish advance twice. However, recent price movements suggest that a break in the level is imminent. A look at the 12-hour timeframe highlighted the formation of a bullish trendline that has served as support for the upward movement.
With the RSI registering an upward tick above the median-50 and the CMF maintaining its positive capital inflows, bulls could register a series of bullish candles to take it above the $0.00000807 resistance.
Aggressive SHIB bulls can look for an entry on a break above the resistance level, especially if Bitcoin [BTC] remains above $30k. Short term profit levels will be at the $0.00000980 level as it could create another notable resistance.
How much are 1, 10 or 100 SHIB worth today?
A spike in foreign exchange outflows could spur buyers
Source: Sentiment
Metrics on the chain of Sanitation highlighted key moves that could support a bullish rally. First, the 30d MVRV ratio was 0.774%. It showed monthly holders were just beginning to turn their losses into profits. This could trigger a massive buying wave as short-term holders look to maximize their profits.
In addition, stock market outflows peaked on July 19. This indicated a short-term accumulation trend with Shiba Inu buyers looking to lock in profits upon a breakout of the main resistance level.
