Shiba Inu (SHIB), the meme coin that took the crypto world by storm last year, has recently seen increased capital inflows and buying pressure, leading many speculators to wonder if this positive momentum is enough to initiate a much-anticipated price recovery.
With growing interest and activity in the Shiba Inu ecosystem, all eyes are now on whether this surge in support will ultimately lead to a revival of the cryptocurrency.
Shiba Inu Price Consolidation and Increased Capital Inflows
Shiba Inu has experienced relatively low volatility on its price charts for extended periods in recent days. Since May 8, the price has fluctuated between US$0.00000832 and US$0.00000914, indicating a consolidation phase.
At the time of writing this article, CoinGecko reflects Shiba Inu’s price at just US$0.00000871. In the last 24 hours, the cryptocurrency saw a slight dip of 1.4%. The meme coin rose a very modest 0.3% over the past seven days.
Despite the recent price consolidation, the Chaikin Money Flow (CMF) and the Relative Strength Index (RSI) have increased on the daily chart, showing significant upward movements in recent days. The CMF indicates increased capital inflows, while the RSI indicates rising buying pressure.
Potential SHIB Rally Based on Fibonacci Retracement and Market Conditions
To analyze the potential price movement of Shiba Inu, traders have used the Fibonacci retracement tool by placing it between the Q1 swing high and the lows observed in December. This tool helps to identify critical levels based on the Fibonacci sequence.
If the current trend continues at SHIB and overall macroeconomic conditions continue to improve, there is a possibility of a rally. This rally could lead to SHIB reaching the 23.6% Fibonacci retracement level, which is located at around US$0.00000967.
Fibonacci retracement levels are often used in technical analysis to identify potential support and resistance levels based on historical price movement. The 23.6% level often represents a first area of interest where there could be a significant recovery or trend reversal.
Factors Affecting the Potential SHIB Rally
The realization of this potential SHIB rally depends on various factors, including the continuation of the current trend, market sentiment, and overall macroeconomic conditions. Positive developments and loosening conditions could contribute to an upward movement in the SHIB price.
While traders and investors monitor these factors and Fibonacci retracement levels, they will closely watch whether SHIB can actually rise to the 23.6% Fib level and, if so, what impact this could have on the future development of the cryptocurrency.