Shiba Inu Shows Signs of Life: Is a Bigger Rally on the Horizon?

Shiba Inu Shows Signs of Life: Can It Ride Bitcoin’s Recovery Wave?

After a persistent downward trend since the beginning of the year, popular memecoin Shiba Inu has struggled to register any notable price recovery. But as of this writing, SHIB’s price has increased by 0.63% due to a general spike in trader engagement and open interest. It’s unclear if SHIB can keep up with Bitcoin’s recovery attempts given its strong correlation to its price action and anticipated rise in network usage.

Will SHIB’s Falling Wedge Formation Lead to a Major Price Reversal?

Although SHIB’s technical indicators showed short-term bullish momentum, it is still unclear how strong the memecoin would be in the long run. SHIB was forming a falling wedge formation at the time of writing, which suggests a possible reversal of the bullish trend.

A breakout over the $0.00001260 major resistance level on its falling trendline may start an upward price trend, according to Crypto Sat on CoinMarketCap. While aiming for $0.00001320 in the mid-term, SHIB’s price may rise to $0.00001280 shortly.

During the 4-hour timeframe, SHIB’s Relative Strength Index (RSI) increased to 51 from its 24-hour value of 43. It seems that this was a sign of increased buying pressure during the past day. The memecoin’s momentum and MACD level (12,26) also indicated strong momentum.

A breakout might move into the crucial resistance zone of $0.00001280–$0.00001320 if SHIB’s bullish momentum is maintained. On the other hand, if the bears continue to pull, price consolidation may attempt the $0.00001220 support. Alongside these important levels, one should keep an eye out for market developments and whale activity.

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