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Shiba Inu Coin price is back on the move as altcoins stabilize after a gruesome last week. The crypto market turned highly volatile after Federal Reserve Chair Jerome Powell’s speech on Wednesday, which drilled holes in the hope for the first rate cut in March. In his remark, Powell said that it was too early to conclusively place the rate cut in March, suggesting that investors will have to wait longer.
Meanwhile, altcoins are strengthening against Bitcoin dominance which according to CoinMarketCap holds at 51.3% of the total $1.66 trillion cap. Most altcoins, including Shiba Inu Coin (SHIB), dumped significantly following the approval of the first spot BTC ETF in the US. The event turned out to be a buy the rumor sell the news affair, leaving investors withdrawn with some counting losses.
Crypto trader @ChiefraFba points investors to watch out for a breakout above resistance at $745 billion (altcoin market cap). This hurdle has been tested severally in the last week, with a potential breakout from a 3-week trendline resistance in the offing.
#Altcoins / Total2
In 7 of the past 10 days the $745b level has been tested and given a good reaction.
Keep an eye on today's close, a potential breakout from the downtrend of the past 3 weeks. pic.twitter.com/R8fjOlySzp
— ChiefraT (@ChiefraFba) February 5, 2024
Shiba Inu Coin price was not spared as it corrected sharply from December highs of $0.000012 to $0.0000085. However, dips witnessed in January could soon be a thing of the past, if bulls complete their mission of sending SHIB above $0.00001.
Shiba Inu Coin Price Prediction: Can SHIB Extend Rebound Past $0.00001?
Boasting $5.3 billion in market capitalization, Shiba Inu is the 19th largest crypto, behind Internet Computer (ICP). As the second-largest meme coin SHIB commands a massive and dynamic community supporting products in the ecosystem such as ShibaSwap and Shibarium.
Its position in the market gives Shiba Inu Coin an advantage seeing that it is traded across many exchanges, allowing it to reach a larger audience.
A 14% increase in its 24-hour trading volume to $72 million underlines the growing interest among traders.
With a daily candle forming, Shiba Inu Coin has the potential to reach higher levels as this week progresses. An ascending trend line support currently ensures that SHIB does not drop further, thus reinforcing the bullish thesis.
The 200-day Exponential Moving Average (EMA) (the purple line on the chart) needs to transform into higher support to further tip the scale in the bulls’ favor. While such a move would be a step in the right direction for investors, it is unlikely to manage to reverse the trend and set Shiba Inu Coin on a profound trajectory.
Hence, a larger rebound above the red band would be the game changer cementing the bullish grip and clearing the path above $0.00001.
The bullish crossover in the Relative Strength Index (RSI) signals an incoming breakout. Traders should watch out for the RSI’s movement above the midline and toward the overbought region (above 70) as reinforcement for the potential price increase.
Consolidation between the green and red bands would be expected to overrule the breakout. During this period, investors can accumulate more SHIB speculating of a larger move in Q1.
Support areas like $0.000008 and $0.00007 will come in handy if overhead pressure intensifies, considering a potential sell-off if Genesis gets approval to sell over $1.6 billion held in different Grayscale products.
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