Shiba Inu has once again captured the market’s attention with a near 6% price recovery, signaling renewed bullish momentum for the popular meme coin. After a period of consolidation, this jump has raised speculation that the bulls could return to drive the price higher. Could this price increase mark the start of a big rally, or is it just a temporary spike? All eyes are on the next step.
This analysis aims to examine the recent 6% price rebound of Shiba Inu and assess whether this upward move signals the start of a larger rally. By examining key technical indicators and market trends, we determine if current momentum can support further gains and levels to look for possible breakouts or pullbacks.
Indicators and Trends: Are Bulls Gaining Strength?
Recently, SHIB’s price turned bullish on the 4-hour chart, recovering from the $0.00001272 support level. The cryptocurrency is trading above the 100-day Simple Moving Average (SMA) and showing strong momentum, with a current focus on moving towards the $0.00002045 level.
An analysis of the 4-hour Relative Strength Index (RSI) shows that bulls are firmly anchored in the market. The RSI signal line has risen past the 50% threshold to around 69%, reflecting increasingly positive movement for the cryptocurrency. This upward trend suggests that buying interest is increasing and momentum could continue to build, potentially leading to further share price gains.
Meanwhile, on the daily chart, Shiba Inu is still showing bullish momentum, marked by the formation of bullish candlesticks. This signals a favorable shift in price action as the cryptocurrency moves towards the 100-day SMA and the $0.00002045 level, with the bullish candlestick patterns suggesting growing upside. Furthermore, if this momentum continues, SHIB could make further progress as it approaches this key resistance level.
Finally, a careful examination of the formation of the 1-day RSI on the 1-day chart shows that SHIB could continue its bullish trend as the indicator’s signal line has risen above 50% and is currently trying to reach the threshold of 60% to evolve. .
What might the next steps look like for Shiba Inu?
As Shiba Inu continues its upward trajectory, several scenarios can unfold. If the cryptocurrency maintains its bullish momentum and breaks the resistance level at $0.00002045, it could signal the start of a significant rally, potentially heading towards the next resistance level at $0.00002631.
Conversely, if SHIB encounters strong resistance or a pullback, the price could consolidate or move towards a support level at $0.00001272. If the price breaks this range on strong volume, it could indicate a continuation of the downtrend and possibly target the support level at $0.00000847.
SHIB was trading at around $0.00001415, reflecting a gain of 6.97% over the past 24 hours. The cryptocurrency’s market capitalization reached approximately $8.3 billion, with a trading volume of over $230 million, representing an increase of 6.73% and 72% respectively.
