The path of least resistance is gradually flipping upwards for many cryptocurrencies, based on market data from CoinMarketCap. After sweeping through liquidity almost at $60,000, Bitcoin (BTC) price recovers above $62,000. Meanwhile, the Shiba Inu Coin price analysis suggests that buyers are quickly gaining an upper hand. This also means that SHIB is poised for a run-up to close the week above $0.00003 bolstered by growing interest in meme coins as Bitcoin and other major altcoins struggle to find direction.

Shiba Inu Coin Price Analysis As The Journey To $0.0001 Begins

As the crypto market struggles to find direction, leading meme coins like Shiba Inu and Dogecoin are getting attention from investors, seeking alternative strategies to avoid the ongoing Bitcoin doldrums.

Shiba Inu Coin increased by 4% to $0.00002341 on Monday backed by a modest 162% surge in the 24 hours trading volume to $475 million. A notable 5% increase in the market cap to $13.8 billion reinforces the new bullish grip.

Shiba Inu price chart | CoinMarketCap

The second-largest meme coin is on a path to becoming strongly bullish. This has been reflected by the rebound in the Relative Strength Index (RSI), holding at 54 and heading toward the overbought region.

SHIB’s bullish move was accentuated as bulls reclaimed support provided by the 20-day Exponential Moving Average (EMA) and the 50-day EMA (the blue and red lines on the chart).

Currently, traders are watching for Shiba Inu’s reaction to the immediate descending trend line resistance. A strong bullish outcome will be reinforced by a further step above the 200-day EMA (line in purple).

Shiba Inu Price Analysis Chart | Tradingview

The grey band on the chart represents Shiba Inu’s initial support. If respected, bulls will have an easy time pushing for the anticipated breakout at least to $0.000028 by the end of the week and above $0.00003 before June.

Traders must be aware that should the same grey area give in to potential sell-side pressure, Shiba Inu price might be forced to seek support and liquidity in lower regions, including the 50-day EMA, the 20-day EMA, and if push comes to shove at the red band support around $0.000021.

Investors focusing on the long-term aspect of investing in Shiba Inu may not want to be bothered by market doldrums. However, they must be alert to employ key dollar-cost averaging techniques to buy lower-priced tokens which in turn maximize returns.

The expected break above $0.00003 could be the biggest market mover, igniting FOMO into meme coin and driving SHIB to a new all-time high above $0.0001.

Assessing SHIB’s Fundamental Position

Blockchain data from IntoTheBlock (ITB), reveals a spike in the potential pressure on the sell side as Shiba Inu recovers. The region at $0.000025 represents approximately 16,000 addresses which purchased 38.66 trillion SHIB. This robust seller congestion zone may delay the rally to $0.00003 and perhaps lead to another breakout to $0.000021.

Shiba Inu IOMAP model | ITB

The green circles in the IOMAP model show that Shiba Inu sits on relatively weak support levels. If selling pressure increases drastically there is a possibility that SHIB will retest $0.00002 before the chances of a larger rebound swell.

The post Shiba Inu Coin Price Analysis: Reasons Why SHIB Poised To Hit $0.0001 In 2024 appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am