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Shiba Inu got extremely close to an important threshold that will determine the fate of the memecoin for the foreseeable future: the token will either show us a disruptive performance or drop back into the progressive consolidation for another few days or even weeks.
At press time, Shiba Inu is continuously moving to the upper border of the consolidation range formed back in June. The range is one of the longest consolidations for the asset that entered the downtrend in November. Traditionally, prolonged consolidations are signs of an upcoming trend reversal.
This breakout attempt is going to be the fourth test of the consolidation range resistance level, which holds SHIB away from entering the accelerated rally. Despite limited price performance, Shiba Inu was able to bounce back above the $0.00001 price range, which is crucial for the coin's development on the market.
From a technical standpoint, Shiba Inu is showing the best performance since November, when it faced a massive spike in inflows after retailers discovered the notorious memecoin. The token broke an important resistance level and entered the classical consolidation range that might help it enter a reversal rally. The trading volume is on a steady recovery.
Fundamental value of SHIB
Thankfully, the project's developers actually tried to make SHIB something more than an extremely speculative and volatile asset that does nothing but attract retail investors who are looking for risk exposure.
Additionally, we are seeing a steady rise in the volume of burned Shiba Inu tokens that act as great fuel for the token with such a large circulating supply that remains in the hands of retail investors.
Alex Dovbnya
