Shiba Inu (SHIB) Price Faces Crucial Moment That Could Push It Up 30% or Seal Its Fate in Bear Market
The Shiba Inu (SHIB) price may be on the verge of its most important moment this year, one that could either propel the price up by another 30% or cement its place in the bear market. For SHIB bulls, now is the time to show their true strength.
To recap, SHIB experienced a rapid rally of nearly 100% in the beginning of the year. However, since reaching its yearly high on February 4th at $0.00001597, the Shiba Inu price has been in a downtrend channel, pushing the price well below its year-opening price of around $0.000008.
Over the past weekend, the long-awaited breakout from the descending trend channel finally occurred. The Shiba Inu price broke above the top of the trend channel at $0.0000076 and managed to hold above this level on Sunday. However, today (Monday), some selling pressure is being observed as a retest of the breakout from the trend channel takes place.
Based on this development, it is now up to the SHIB bulls to confirm the trend and avoid a fakeout. Failure to do so could result in investors quickly losing interest in Shiba Inu, causing the price to fall towards the middle of the trend channel and the yearly low at $0.000006.
Should the breakout be confirmed, the resistance at $0.00000833 could become the first target. This price level also corresponds to the 23.6% Fibonacci retracement level.
With the daily RSI currently at 49, there is still plenty of room for an explosive move to the upside, potentially sending SHIB on a 30% rally towards the resistance zone between $0.00000969 (200-day EMA) and $0.00000977 (38.2% Fibonacci retracement level) before approaching the psychologically important level of $0.00001. A possible rally pause can be expected at this point.
Bullish arguments for the Shiba Inu price outweigh the bearish ones
Santiment, a renowned market research platform, has highlighted the renewed interest in Shiba Inu, as evidenced by an increase in whale transactions. Recent data shows an astounding 14 separate transfers, each exceeding $1 million (as of July 6th), the highest level since April 3rd of this year. Such significant capital movements not only underscore the confidence of prominent investors but also serve as evidence of the growing trust and belief in the potential of the Shiba Inu ecosystem.
An additional factor contributing to the price surge of Shiba Inu is the surge in new addresses within its network. As reported by Bitcoinist, Shiba Inu has seen a significant increase in the creation of daily addresses, consistently surpassing 2,500 per day in recent weeks. In June alone, there was a staggering increase, with over 4,000 new addresses registered daily, representing an incredible 400% surge from the quarterly low in May. The importance of this increase in new addresses should not be underestimated, as it signifies the interest of retail investors.
Another factor driving the price momentum of Shiba Inu is the heightened anticipation for Shibarium. Enthusiasts and investors firmly believe that the introduction of Shibarium will have a significant impact on the value of the Shiba Inu ecosystem. With the official confirmation of the unveiling of Shibarium at the upcoming ETH conference in Toronto in mid-August, the SHIB army is filled with excitement and speculation.
Featured image from iStock, chart from TradingView.com
