The popular memecoin Shiba Inu is experiencing an intriguing bullish trend currently. Savvy investors should monitor key technical levels that could trigger a significant short-term surge.
The technical indicators of Shiba Inu reveal a short-term bullish momentum, while the long-term strength of the memecoin remains uncertain. At the time of writing, SHIB was consolidating within a bearish compression pattern, indicating a potential bullish trend reversal.
According to Crypto Sat on CoinMarketCap, a breakout above the key resistance level of $0.00001260 on its downtrend line could trigger a price uptrend. The SHIB price could then move towards $0.00001280 in the short term, aiming for $0.00001320 in the medium term.
The 24-hour RSI of SHIB was at 43 and rose to 51 on the 4-hour chart, indicating increased buying pressure over the last 24 hours. The MACD level (12,26) and memecoin momentum also highlighted a bullish trend. Similarly, both short and long-term moving averages showed a “buy” signal at the time of publication. However, long-term moving averages signaled “sell”, indicating existing bearish pressure, as evidenced by a low long-short ratio (0.87).
The memecoin market has been extremely speculative lately, sparing even established memecoins like Shiba Inu. Several market developments could fuel the short-term bullish momentum of SHIB.
For example, Shibarium, the layer 2 blockchain of the memecoin, is about to reach a milestone of 10 million blocks. According to Shiba Inu team member, Lucie, the growing SHIB community is also anticipating the SHIB OS.
The OS is a solution for businesses and governments transitioning to secure decentralized governance models and real utility of the blockchain. With these and other developments, the bullish momentum of SHIB could strengthen and support a medium-term uptrend.
74% of SHIB is controlled by whales, according to IntoTheBlock data. Most holders (60%) have held for over a year at a loss, hoping for a price rebound.
The increase in significant transactions over the past week, coupled with market developments, could be a sign of increased whale activity related to a price rise. With a rise in open interest (+5.63%) and a strong correlation with Bitcoin, SHIB’s movement could follow Bitcoin’s price recovery.
If the bullish momentum of SHIB persists, a breakthrough could lead to a move towards the key resistance zone of $0.00001280 – $0.00001320.
Conversely, if bears exert further pressure, the support at $0.00001220 could be tested as price consolidation continues. Monitoring whale activity and market developments alongside these key levels will be crucial.
Gaston has been a writer for over 7 years and a passionate cryptocurrency enthusiast since 2020. He loves exploring the crypto ecosystem and is now dedicated to sharing his insights and discoveries through InvestX.
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