The Shiba Inu (SHIB) cryptocurrency has garnered attention from investors due to its unique characteristics: it is widely viewed as a meme-based coin and has a large following among retail investors.
In addition, due to its volatility and rapid rise in value over very short periods, SHIB has caught the eye of many traders. At press time, the coin is trading at $0.058901 with a decline of 5.85% over the past 24 hours.
Momentum Shifts Bullish
According to TradingView, the daily price chart of SHIB has shown bullish momentum as evidenced by the recent jump in price that occurred after bouncing off the December low near $0.0000070, in addition to breaking a resistance level of approximately $0.0000086.
The prior supply level of $0.0000086 was identified as a key horizontal resistance level, and now that level has become a support zone since SHIB has gained more control back from sellers. The Relative Strength Index (RSI) has risen back into the upper 60s, which indicates that momentum has increased, although it does not currently represent a high level of excess buying activity.
Even though the recent price developments have increased the positive outlook towards Shiba Inu on a short-term basis, the price is trading below the 200-day SMA (simple moving average) on the daily chart.
Therefore, while the price action appears to be more bullish in the immediate future, the overall long-term trend remains cautious until we see price close above $0.0000095-$0.000010
Also Read: Shiba Inu (SHIB ) Whale Moves 469 Billion SHIB to OKX Amid Market Decline
Community Sentiment Reinforces the Bullish Breakout
A recent update on X , by a prominent member of the Shiba Inu community (Lucie), indicating a 26% weekly increase is further evidence of this return in price. Lucie’s tweet stated, “Down. Never Dead.”
This implies her belief that the Shiba Inu coin will always recover from a downturn based on its past performance following extended periods of price declines.
While a single tweet by a community member may not indicate a complete confirmation of a rally, it is often used to reinforce the possibility of a bullish narrative during a breakout.
In conclusion, SHIB began this January positively, taking the necessary steps to build support and encourage momentum among buyers for the foreseeable future, as long as they remain above the previous high that had been re-established.
If this is true, a test of the price level of $0.000010 appears likely. However, failing to hold on to price levels now will create further consolidation before the potential for greater price movement is achieved.
Also Read: Shiba Inu (SHIB) Eyes New All-Time High as Price Surges Over $00.0₅7400
