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After months of selling pressure that caused the token to drop to its lowest levels, Shiba Inu is making an effort to level out. SHIB briefly fell below the $0.000006 mark after a severe breakdown earlier in the week, before regaining that level, giving traders a possible early indication that selling momentum may finally be slowing. Following several drops, buyers have been stepping in close to local lows in recent sessions, resulting in a slight rebound.
It's still not enough
Although SHIB is still trading below moving averages that are still sloping lower, the overall trend is still bearish. However, the technical significance of the $0.000006 zone reclamation is noteworthy. This level now serves as an immediate support area, and the subsequent stage of movement will probably be determined by how the price moves around it.
The crucial question for investors is whether this rebound is the start of a longer-term uptrend or merely a brief lull in a longer-term decline. It might start creating a base if SHIB can maintain above $0.000006, which would enable the token to try a recovery toward adjacent resistance zones.
Stabilization next in line
After a sell-off, such stabilization might draw short-term traders seeking relief rallies. Risks are still high, though. Altcoin sentiment is still shaky, and SHIB has failed to maintain rallies on several occasions in recent months.
An additional test of recent lows would be possible if there were a breakdown back below $0.000006, which would probably increase selling pressure. Compared to previous declines, momentum indicators indicate that selling intensity has decreased, which could allow the price to consolidate rather than plunge further. Depending on the overall state of the market, consolidation phases frequently come before either recovery attempts or another leg lower.
Investors should keep an eye on SHIB's ability to create support above the level that was reclaimed and progressively generate higher lows. The price may be able to overcome higher resistance levels if there is consistent trading above $0 000006, which would indicate that buyers are beginning to regain confidence.
As of right now, SHIB seems to be at a turning point. Maintaining current support might be the first step toward stabilization, but further strength in the upcoming sessions will be needed for confirmation.
Dan Burgin
U.Today Editorial Team