Shiba Inu Price Surges 13% After Breaking Consolidation Zone, Faces Critical Resistance

Shiba Inu Price Surges 13% After Breaking Consolidation Zone, Faces Critical Resistance

Shiba Inu (SHIB) experienced a significant price surge on August 23, rising 13% to reach $0.00001614 after breaking out of a consolidation phase. However, the price has since retraced. Investor sentiment is turning increasingly optimistic, fueled by a rise in network usage and trading volume, along with new developments such as the Shiba Inu Decentralized Autonomous Organization (DAO). SHIB is now only 17% away from a key resistance level, which, if surpassed, could ignite a full-blown bull market for the meme-based cryptocurrency.

Shiba Inu Network Growth Signals Potential Price Rally

The Shiba Inu network, Shibarium, has emerged as a major driving force behind SHIB’s recent price action. Developers are actively rolling out new products aimed at attracting more investors. One of the latest initiatives is the planned launch of the Shiba Inu DAO, as announced by Shiba Inu’s marketing lead, Lucie, on August 24. This DAO aims to enhance community involvement by decentralizing governance processes.

Simultaneously, the Shibarium network has seen substantial growth, with account numbers reaching a new all-time high of 118,470 on August 25, indicating an influx of new users. Data from Santiment also reveals a steady rise in SHIB’s daily active addresses and trading volume since August 14, correlating with an 8% increase in SHIB’s price over the same period.

Moreover, futures traders are increasingly betting on SHIB’s price rise. According to Coinglass, there has been a greater accumulation of Long Liquidation Leverages than shorts in the last 24 hours, suggesting a bullish outlook among traders.

However, a closer look at the SHIB open interest (OI) and recent price movements indicates that some traders are closing their long positions, likely due to expectations of a short-term price retracement.

Current SHIB Market Dynamics: A Crossroad for Bulls and Bears

The divergence between network growth and futures traders’ sentiment has placed Shiba Inu in a precarious position. While the bullish sentiment appears dominant, the inherent volatility of the cryptocurrency market means the situation could shift rapidly.

SHIB’s price has retraced 8% since Saturday but is approaching a strong support level. Given the positive network growth, this support could act as a springboard for a potential price rebound.

The $0.00001451 level represents a key support zone, having previously constrained the price for over 20 days.

Can Shiba Inu Reach $0.00001750?

In summary, Shiba Inu’s price is in a short-term bullish phase within a broader bearish trend. Should the bulls maintain control, this rally could evolve into a full trend reversal. Conversely, if bears gain the upper hand, SHIB may decline back to its August 5 lows.