Shiba Inu (SHIB) Price 15% Jump Signals More Upside

Shiba Inu price resumed the uptrend alongside other cryptocurrencies as traders focused on buying dips following Monday’s crash. The second-largest meme coin had surged to exchange at $0.00001369 during US business hours on Tuesday. This price movement positioned SHIB as one of the top gainers in the recent market-wide recovery, displaying a strong correlation with Bitcoin. However, despite the recent uptick, the overall trend remains bearish, prompting questions about the sustainability of this rally. As technical indicators suggest possible short-term reversals or consolidations, market watchers are keen to see if Shiba Inu can overcome key resistance levels to sustain a bullish breakout.

Will Shiba Inu Price Rally Last?

The descending wedge pattern indicates that SHIB price is currently in a downward trend. The recent candlestick shows a small green candle after a series of red candles, suggesting a potential short-term reversal or consolidation phase within the descending wedge. The falling wedge pattern also often suggests a corrective phase, which might lead to a bullish breakout, but confirmation is required.

The 50-day EMA is at $0.00001734, and the 200-day EMA is at $0.0000186, both above the current price. This confirms the overall bearish trend CoinGecko data shows.

The Shiba Inu price chart sports an immediate support level of around $0.0000115, with a stronger support zone between $0.00001 and $0.000011, highlighted by the grey area. This zone also has a fair value gap that the price action filled in yesterday’s crash. Additionally, it was the last zone of market imbalance for the Shib price, meaning the dip may be over. 

There is some resistance around $0.00001734 (50-day EMA), followed by $0.00001860 (200-day EMA), and a major resistance zone around $0.00002500 to $0.00003000. If the price fails to break above the 50-day EMA, it may drop 41% to $0.00001135, which coincides with the bottom trendline of the falling wedge and falls into the FVG zone.

The Relative Strength Index (RSI) is at 33.01, which is close to oversold territory. This indicates a potential short-term bounce but with an overall bearish sentiment. The Chaikin Money Flow (CMF) is at -0.01, indicating mild selling pressure.

If the Shiba Inu price forecast shows that it breaks above the 50-day and 200-day EMA, it may signal market strength, turning the asset bullish. This may invalidate the bearish thesis, as a follow-up breakout from the falling wedge may catapult the SHIB price to $0.00002796, a 102% increase.

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