Shiba Inu Price Recovers by 16%, Will It Last?

As a seasoned crypto investor with battle-hardened nerves and a wallet full of digital assets, I’ve learned to read between the lines when it comes to market analysis. The Shiba Inu price rally we’re seeing now is a familiar dance – a bullish recovery following a bearish downturn, often indicative of a rollercoaster ride in the crypto world.


On Tuesday during London trading hours, the price of Shiba Inu bounced back, recouping some of Monday’s losses due to the broader market decline. Notably, Shiba Inu was among the top performers during the market recovery, demonstrating a strong positive correlation with Bitcoin. In other words, as Bitcoin rose, so did Shiba Inu, making it one of the assets that gained significantly in the overall market upturn.

Will Shiba Inu Price Rally Last?

As a researcher studying the cryptocurrency market, I’ve noticed that the price of Shib is currently following a downward trend, as suggested by the descending wedge pattern. However, there seems to be a glimmer of hope, with the latest candlestick showing a small green candle after several red ones. This could indicate a brief reversal or consolidation period within the descending wedge.

According to CoinGecko’s data, the 50-day Exponential Moving Average (EMA) stands at approximately $0.00001734, while the 200-day EMA is at $0.0000186. Interestingly, both these averages are currently higher than the current price, which suggests a predominant downtrend in the market.

Currently, the price of Shiba Inu is holding steady around 0.0000115. A more robust support area can be found between 0.00001 and 0.000011, as indicated by the gray section on the chart. This region also includes a gap in fair value that was filled during the recent price drop. Furthermore, this is the last area where the Shiba Inu market was imbalanced, suggesting that the downtrend might have ended.

The asset encounters a small amount of resistance near approximately $0.00001734 (represented by the 50-day Exponential Moving Average), followed by another resistance point at around $0.00001860 (the 200-day Exponential Moving Average). A significant resistance area lies between $0.00002500 and $0.00003000. If the price cannot surpass the 50-day EMA, it could potentially decrease by 41%, reaching approximately $0.00001135. This level also lines up with the bottom trendline of the falling wedge and falls within the FVG zone.

The Relative Strength Index, or RSI, stands around 33.01, suggesting it’s nearly in the oversold region. This could mean a brief market rebound, but overall, there seems to be a predominant pessimism. Meanwhile, the Chaikin Money Flow, or CMF, is at -0.01, hinting at slight pressure from sellers.

Shiba Inu Price Recovers by 16%, Will It Last?

If the projected Shiba Inu price exceeds both its 50-day and 200-day moving averages, this could indicate a robust market, making the asset more likely to rise. This might contradict the pessimistic outlook, as a subsequent breakout from the descending wedge could propel the Shiba Inu price towards $0.00002796, representing a potential increase of 102%.

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2024-08-06 11:13