Prominent digital currencies such as Shiba Inu have recently entered a bearish phase due to a downturn in the broader cryptocurrency market this week. Nevertheless, several positive indicators around its price suggest that this dog-themed meme coin might be on the verge of a rebound in the days ahead.
With the mood surrounding meme coins gradually improving in the industry, Shiba Inu could attract a wave of both new and returning investors who are closely monitoring for potential price rallies.
Shiba Inu Seeks Recovery Following Recent Decline
Market analyst Fiatleak on the X (formerly Twitter) platform has noted that Shiba Inu’s price movements are currently showing early signs of recovery, indicating a potential uptrend in the near future. The analyst asserts that SHIB is signaling a rebound as bullish momentum begins to materialize in the market following a period of declines, with renewed interest from both retail and institutional investors.
Despite several challenging weeks, SHIB has demonstrated the potential for a comeback with its current price at $0.000017, reflecting a decline of around 3.89% over the previous day. However, the recent downward trend might be waning, as indicated by a buy signal from the TD (Tom Demark) Sequential indicator.
Consequently, the expert has highlighted several critical resistance levels for investors to observe during the recovery phase. Fiatleak notes that the first significant resistance is found at the 200 Simple Moving Average (SMA) of $0.00001891. If Shiba Inu manages to overcome this critical resistance level, it could advance further towards the 50 SMA of $0.00002288, which would signify a strong recovery from its recent lows.
Fiatleak emphasized that despite market fluctuations, Shiba Inu’s price is still being bolstered by the increasing demand among retail investors. Additionally, its dynamic and large community, known as the SHIBArmy, continues to significantly impact SHIB’s price dynamics.
The analyst believes that any positive remarks or news from the community could aid the meme coin’s upward momentum in the coming days. Another factor that Fiatleak notes as potentially sustaining SHIB’s current rally is the recent uptick in trading volume, which hints that buyers are beginning to re-enter the market.
SHIB Exhibiting Negative Price Activity Today
Earlier this week, SHIB experienced notable price growth towards the $0.000019 mark, prompting a broader market recovery. However, as of today, the second-largest meme coin has dropped to approximately $0.00000170, stirring speculation about its short-term prospects.
Currently, Shiba Inu is trading at $0.0000174, reflecting an over 1% drop in the last day. Despite this significant decline, investor sentiment remains strong towards the meme coin, evidenced by a 15% increase in trading volume over the past 24 hours.
Featured image from Adobe Stock, chart from Tradingview.com
