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It was certainly not the most anticipated movement coming from the meme coin, after Shiba Inu made what may be the most misleading price move of the season. Following weeks of gaining traction and recovering important technical levels, SHIB seemed to be preparing a strong breakout. However, the quick reversal that followed rattled the picture on the chart.
Steady growth
When it peaked in late July, SHIB appeared ready to retake the mid-May range and keep rising. At first look, the breakout above $0.000013 appeared to be consistent, with rising volume and a bounce off the 50 EMA. However, SHIB sharply reversed, falling back below the support zone at $0.000012 and closing below the 50-day moving average — a classic fakeout — just as conditions appeared to be favorable for bulls.
A major shakeout event was probably brought on by this move, forcing leveraged longs and recently onboarded retail holders to leave the market at a loss. Because they persuade investors to enter right before a trap closes, these reversals are cruel from a psychological perspective. SHIB was up for a short while, though. Following a sell-off, the asset experienced a brief intraday rebound and is currently consolidating above $0.000013 once more.
SHIB in neutral waters
The abrupt recovery returns the asset to a neutral-to-bullish consolidation range, disproving the bearish continuation thesis. Another breakout attempt toward $0.0000145 and possibly higher is possible if SHIB can maintain the $0.000013 level and increase volume on the upside. However, volatility has returned, and there is still a chance of another fakeout.
SHIB is currently moving around a risky middle ground, sandwiched between the cautious optimism of sidelined bulls and the incredulity of recent bears. Sustainable volume and unambiguous trend confirmation are essential for SHIB's future. You can anticipate more chop and fakeouts in the interim.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team