The Shiba Inu (SHIB) price may be facing the most important moment this year, which could either push the price up another 30% or seal its stay in the bear market. For the SHIB bulls, now is the time to show their true strength.
To recall: earlier this year, SHIB experienced a furious rally of close to 100%. But since the yearly high on February 4, at $0.00001597, the Shiba Inu price has been in a descending trend channel, which has even pushed the price well below the yearly opening price at around $0.000008.
Over the past weekend, the long-awaited breakout from the descending trend channel took place. The Shiba Inu price broke above the top of the trend channel at $0.0000076 and managed to hold firm above this level on Sunday. However, some selling pressure can be observed today (Monday). A retest of the breakout from the trend channel is taking place.
Based on this, it is now up to the SHIB bulls to confirm the trend and avoid a fakeout. If this fails, investors could quickly lose interest in Shiba Inu again and the price could fall towards the mid-range of the trend channel and the yearly low at $0.000006.
If the breakout is confirmed, however, resistance at $0.00000833 could become the first target. At this price level, the 23.6% Fibonacci retracement level is also located.
With the daily RSI currently sitting at 49, there is still much room left for an explosive move north which could send SHIB on a 30% rally towards the resistance area between $0.00000969 (200-day EMA) and $0.00000977 (38.2% Fibonacci retracement level), before the psychologically important level of $0.00001 is also within reach. At this point, a breather from a possible rally can be expected.
Bullish Case For Shiba Inu Price Prevails
Santiment, a renowned market intelligence platform, has highlighted the renewed interest in Shiba Inu, evident through a surge in whale transactions. Recent data reveals an astonishing 14 separate transfers exceeding $1 million each as of July 6, the highest level recorded since April 3 this year. Such significant movements of capital not only underscore the confidence of prominent investors but also serve as a testament to the growing trust and belief in the potential of the Shiba Inu ecosystem.
A compelling factor contributing to the price rise of Shiba Inu also lies in the generation of new addresses within its network. As reported by Bitcoinist, Shiba Inu has witnessed a substantial increase in the creation of daily addresses, consistently surpassing 2,500 per day in recent weeks. The month of June alone witnessed a staggering surge, with daily new addresses exceeding 4,000, marking an incredible 400% rise from the quarterly low in May. The significance of this surge in new addresses cannot be underestimated. as it shows the renowned interest by retail investors.
Another factor amplifying Shiba Inu’s price upswing is the heightened anticipation of Shibarium. Enthusiasts and investors firmly believe that Shibarium’s launch will exert a substantial influence on the value of Shiba Inu’s ecosystem. With the official confirmation of Shibarium’s unveiling at the upcoming ETHToronto conference in mid-August, the SHIB army is abuzz with anticipation and speculation.
Featured image from iStock, chart from TradingView.com
