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After one of the cruelest corrections of the year, Shiba Inu might be preparing for a resurgence. Following the crypto market crash, the meme token’s price recently added a zero. However, it now seems to be stabilizing, and if momentum continues, SHIB may be able to remove that zero in the coming days.
Shiba Inu market reversal
In an effort to create a base for a potential reversal, Shiba Inu has been consolidating closely near its local bottom, currently trading at about $0.0000098. The price action indicates that sellers are clearly exhausted, because there was a noticeable increase in buying volume following the large liquidation-driven decline that drove SHIB below $0.000010.
Despite the high level of volatility, the last few sessions have shown smaller candles and less trading activity, which are typical indicators of market hesitancy prior to a breakout. Technically speaking, Shiba Inu has yet to regain any significant short-term bullish structure, as it continues to trade below all three major moving averages (the 50-, 100- and 200-day EMAs).
Another push for SHIB
Nonetheless, the RSI’s proximity to 39 indicates that SHIB is approaching oversold territory, which is typically where price reversals take place. To push SHIB back above $0.000010 and remove the recently added zero, a clean breakout above the $0.0000112-$0.0000120 resistance zone would probably draw in new momentum traders and retail inflows.
For the next three days, volume confirmation is the most important thing to keep an eye on. A short-term rally may be in the works if trading volume rises and a green candle closes above $0.0000105, indicating that accumulation is taking place at current levels. Bullish sentiment may be strengthened by an increase in wallet activity or exchange outflows, according to on-chain data.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team