Shiba Inu Revival? Here’s Why A Resurgence May Be Imminent

Christian Encila

1 year ago

3 mins read

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Shiba Inu (SHIB) has been displaying a bearish structure accompanied by a noticeable capital outflow, leading to a plunge in its value. Despite the prevailing technical indicators, there is a lingering possibility of a short-term range formation.

At present, the critical resistance on the charts is identified at $0.000007. Notably, this level experienced a brief shift to support earlier in the week, but the bullish momentum was ultimately unable to sustain its grip.

As of the latest update, the current SHIB price on CoinGecko hovers at $0.00000692, with a moderate 24-hour rally of 3.5% and a modest seven-day gain of 1.2%. The recent descent below the trendline support does not necessarily invalidate its strength.

Frequently observed in technical analysis, assets often retest critical support levels to confirm their resilience before any substantial directional shift. If SHIB can promptly reclaim its position above this trendline, it might signal the commencement of a potentially bullish phase.

Shiba Inu: Struggle For Support

Analyzing the four-hour chart, the market structure of SHIB took a bearish turn following the decline below the $0.00000693 mark, ultimately reaching the local lows of $0.00000673. Similar market movements were witnessed earlier this month, which led to the plotting of a set of Fibonacci levels.

Notably, the 61.8% and 78.6% levels failed to witness a successful H4 trading session closure above them, despite a brief spike to the $0.00000729 mark. In the last 12 hours, SHIB bulls have managed to put a temporary halt to the prevailing bearish momentum, thereby indicating a possibility of a bounce back towards the $0.000007 level.

SHIB has a market cap of $4.1 billion today. Chart: TradingView.com

Evaluating the moving averages, SHIB currently lies below both its short-term and long-term averages, historically indicating the presence of bearish momentum. However, considering the broader context, this positioning could potentially signify a consolidation phase, setting the stage for an imminent reversal in its trajectory.

Potential Impact Of Current Market Trends On SHIB’s Long-term Outlook

The recent market trends have raised concerns regarding SHIB’s long-term trajectory, with the bearish structure and substantial capital outflow posing significant challenges for the cryptocurrency.

However, market analysts continue to highlight the potential for a short-term range formation despite the persisting technical indicators. As the cryptocurrency grapples with critical resistance levels and the possibility of retesting support, investors remain cautiously optimistic about the potential for a bullish phase.

SHIB seven-day price action. Source: Coingecko

Notably, the recent drop below the trendline support has added to the uncertainty surrounding SHIB’s near-term performance. However, technical analysis suggests that a quick reclaim of the position above this trendline could serve as a crucial indicator for a potential bullish phase.

The recent positioning of SHIB below both its short-term and long-term moving averages has raised concerns about the persistence of bearish momentum. However, experts underline the importance of considering the broader context, emphasizing the potential for a consolidation phase that could pave the way for a reversal in SHIB’s market trajectory.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from BeChewy

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.