Shiba Inu Shows Bullish Formation, Strong Momentum Indicators

The estimated gains fall from 105% to 120% above the current price level. With continued favorable marketplace conditions and persistent upward momentum, SHIB may rise to price boundaries seen earlier.

According to CoinMarketCap, the current price of Shiba Inu is $0.00001578, and a 24-hour trading turnover is $638.54 million. This represents a 4.55% drop in volumes compared to the previous session, indicating a short-term cooldown following the rally. The 6.87% volume-to-market cap ratio remains high, showing that the market continues to react to Shiba Inu.

SHIB Data | Source: CoinMarketCap

With 1.5 million holders, SHIB has a broad reach and a large user community. The market may test the breakout level again as price action is close to $0.0000155. If the market bounces from $0.0000155 upwards, it may confirm the earlier breakout and increase the market price.

Technical Indicators Confirm Setup on the Shiba Inu Price

After recovering from the oversold levels, the RSI is heading towards a neutral-to-bullish position. Judging by the attached charts, the RSI indicator has been near 65 in the last 14 days.

Such levels in RSI have traditionally served as clues of emerging rebounds that extend until markets get to overbought ground, allowing for further appreciation.

Daily charts for the divergence show that RSI lows created in mid-March and late April have made a clear upward pattern. The divergence occurring against the backdrop of the decreasing price trend provides an optimistic outlook. A large mid-May candle on the upper chart pierced wedge resistance, signaling a possible reversal.

1-day SHIB/USDT Chart | Source: TradingView

Together with bullish RSI divergence, this is a bullish momentum shift. Under a similar structure, the earlier episode was followed by an escalated price, but every episode has variables.

The price has been above immediate resistance around $0.0000150. If the upward momentum continues, key resistance levels may develop around $0.0000200 and $0.0000240, previously consolidation areas.

The critical point for an increase from the technical analysis of all the above is $0.000081, but it will have to be supported by the market and a rise in activity.

In the last two weeks, the recovery of meme tokens such as SHIB inside the larger crypto sector indicates growth in participation from retail and speculating traders. The altcoin market‘s strength during Bitcoin’s recent stabilization has solidified momentum for SHIB and others.