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Shiba Inu produced one of its strongest short-term reversals in weeks, increasing its market capitalization by about $425 million as SHIB surged nearly 4% and targeted a crucial technical resistance zone. After starting the session at $0.00000474, SHIB is currently trading at $0.00000493.
Shiba Inu stabilizes sooner than expected
Compared to the low-volatility price action that dominated the first half of August, the move appears to be much stronger. Momentum indicators turned sharply upward, and volume increased in tandem with the green candle. The return of SHIB above its shorter-term moving averages is the key current technical development.
After clearing the averages around $0.00000450 and $0.00000460, the token is currently testing the much more significant resistance between $0.00000489 and $0.00000500. Since the start of August, this region has consistently restricted upside attempts. Therefore, a confirmed break above $0.00000500 would be more significant than just the percentage gain.
After months of continuous decline, it would place SHIB above yet another significant moving average and create the first convincingly higher short-term trading range. The effort is supported by momentum. The daily RSI has quickly moved toward bullish territory without hitting the traditional overbought threshold of 70, rising from below 50 to roughly 61. However, on-chain exchange data remains inconsistent.
Netflows are finally stabilzing
The total exchange netflow is still significantly negative at about 207.3 billion SHIB, while SHIB's exchange reserves fell by 0.24%. Both may reduce sell-side availability in the near term. At the same time, total inflows came to about 523.1 billion SHIB, and the seven-day mean exchange inflow rose by 23.8%.
If those tokens are eventually sent to exchanges for disposal, higher inflows may put pressure on sellers. There is some indication that activity is growing in tandem with price, as both active and receiving addresses rose by about 1.2%.
As a result, the breakout has valid technical support, but it is still too soon to declare it a complete trend reversal. At $0.00000574, SHIB is still trading well below its long-term moving average. $0.00000500 is the immediate threshold for bulls. If it stays above that level, attention may shift toward $0.0000055–$0.00000575.
If rejected, the recently reclaimed $0.00000460–$0.00000450 region would once again come under pressure, and the current $425 million expansion might prove to be just another short-term relief rally.
U.Today Editorial Team
Dan Burgin
