- Shiba Inu suffered a massive blow on September 7, reaching a swing low at $0.00000510.
- SHIB bulls are looking to reverse the period of underperformance but have been seen struggling with the lack of trading volume.
- Shiba Inu appears to be recovering slowly after a technical indicator suggested that the downtrend may be over.
Shiba Inu is starting to recover after the massive price plunge that wiped out nearly 30% of SHIB value. A technical indicator has revealed a bottom signal, suggesting that the canine-themed cryptocurrency is about to see a trend reversal to the upside.
Shiba Inu sees tough road ahead in recovery
Shiba Inu appears to be regaining strength slowly after the September 7 price crash to a low of $0.00000510. On the 4-hour chart, SHIB has printed a bottom signal given by the Momentum Reversal Indicator (MRI), suggesting that the downtrend may be retreating.
The Relative Strength Index (MRI) indicates that SHIB was oversold amid the steep decline, leading to a quick 18% recovery from the swing low. The Arms Index which is used to gauge overall market sentiment is further suggesting a bullish signal sitting at 0.70, as more buyers are in the market than sellers despite the diminished trading volume.
Currently, Shiba Inu price is supported by the July 20 low, as SHIB attempts to tag the 23.6% Fibonacci retracement level that acts as its first obstacle. Should the dog-themed token be able to slice above this level, it would still need to flip it into resistance before attempting to climb higher.
To reverse the period of underperformance, SHIB would need to slice above the 38.2% Fibonacci retracement level at $0.00000677 before tagging the diagonal resistance line sitting near the 50 four-hour Simple Moving Average (SMA) at $0.00000705. Bullish investors should note that this level would act as the next toughest hurdle for Shiba Inu.
Only a massive spike in buying pressure would allow SHIB bulls to target bigger aspirations above the aforementioned resistance, which sits nearby at the 100 four-hour SMA at $0.00000727, then the 50% Fibonacci retracement level at $0.00000729.
SHIB/USDT 4-hour chart
However, higher levels are not expected at the moment unless the buyers show relentless commitment to incentivize Shiba Inu price to continue climbing.
Should selling pressure arise, SHIB may discover immediate support at $0.00000569, the July 20 low, before dropping lower into the demand zone that meets the June 22 low and ends at the June 12 low.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.