The Shiba Inu price has experienced a strong rebound, increasing by 16%. Despite this, its trading volume remains stable at 2.039T, reflecting consistent activity without significant fluctuations.
Shiba Inu Price Rebound
Shiba Inu saw a price rebound during the London trading session on Tuesday, recouping some losses from the previous day’s downturn. This recovery places SHIB among the top gainers in the market-wide recovery, showing a strong correlation to Bitcoin.
Will Shiba Inu’s Rally Last?
The Shiba Inu (SHIB) price is currently in a downward trend, as indicated by the descending wedge pattern. The recent small green candlestick suggests a potential short-term reversal or consolidation phase. The falling wedge pattern often indicates a corrective phase, which might lead to a bullish breakout, but confirmation is required.
The 50-day EMA is at $0.00001734, and the 200-day EMA is at $0.0000186, both above the current price, confirming the overall bearish trend. CoinGecko data shows an immediate support level at around $0.0000115, with a stronger support zone between $0.00001 and $0.000011. This zone, highlighted by the grey area, filled a fair value gap during the recent crash, indicating the dip may be over.
There is resistance around $0.00001734 (50-day EMA), followed by $0.00001860 (200-day EMA), and a major resistance zone between $0.00002500 and $0.00003000. If the price fails to break above the 50-day EMA, it may drop 41% to $0.00001135, aligning with the bottom trendline of the falling wedge and the FVG zone.
The Relative Strength Index (RSI) is at 33.01, close to oversold territory, suggesting a potential short-term bounce despite the overall bearish sentiment. The Chaikin Money Flow (CMF) is at -0.01, indicating mild selling pressure.
Shiba Inu Price Outlook
If Shiba Inu’s price breaks above the 50-day and 200-day EMAs, it may signal market strength, turning the asset bullish. This could invalidate the bearish thesis, and a breakout from the falling wedge could catapult SHIB to $0.00002796, a 102% increase.
