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Shiba Inu (SHIB) is showing signs of renewed bullish momentum despite a recent 18% price drop. The 1-day price chart indicates an accumulation phase, suggesting that buyers are regaining control after a sharp correction. On March 26th, SHIB bulls tested the critical resistance level at $0.0000152 but faced rejection, leading to a temporary downturn. However, technical indicators hint at a potential comeback.
Failed Rally or Strategic Accumulation?
Last week, SHIB attempted to break above $0.0000152 but was met with a 20% rejection, signaling strong resistance. While this may seem bearish, a deeper look at the market structure presents a different perspective.
Bitcoin (BTC), the market leader, experienced a 5.8% drop, falling from $87.6K to $82.4K. This led to widespread panic and altcoin sell-offs, including SHIB. Despite the downturn, SHIB maintained a bullish structure on the daily chart, holding above the crucial $0.0000138 level. The key support to watch remains $0.0000115—if broken, it could signal a bearish shift.
Technical Indicators Support Bullish Outlook
Shiba Inu’s On-Balance Volume (OBV) has been on an upward trend for three weeks, indicating steady buying pressure. Additionally, the Relative Strength Index (RSI) is recovering and approaching the neutral 50 mark. A move beyond this level could confirm a bullish resurgence.
The 4-hour chart shows SHIB’s struggle to maintain support levels at $0.000013 and $0.0000125. However, a strong 20% rebound within the past 24 hours has brought SHIB back above $0.0000125, hinting at renewed buyer interest.
What’s Next for SHIB?
While short-term price action on the 4-hour chart appears bearish, the daily timeframe remains bullish. This discrepancy suggests that swing traders and long-term investors should consider accumulating SHIB, anticipating a potential breakout. If SHIB reclaims $0.0000138, it could attempt another push toward $0.0000152 and beyond.
With Bitcoin stabilizing and SHIB showing accumulation signals, the memecoin might be gearing up for its next major move. Investors should keep a close eye on resistance and support levels to navigate SHIB’s price action effectively.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Shiba Inu (SHIB) Faces Key Resistance: Will the 7.5% Rally Hold or Reverse?
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
