Shiba Inu (SHIB), the popular dog-themed crypto token, experienced a surprising weekend rally, even briefly eliminating a zero after its decimal point, which it had gained back in May 2023. However, SHIB has retreated again, with a 5% dip in the last 24 hours. Nevertheless, this Dogecoin competitor still shows an 8.4% gain on the weekly charts.
SHIB had been following a downward trajectory for much of the year since February. However, this trend was disrupted towards the end of June, as SHIB started consistently forming higher highs and higher lows. Furthermore, it recently broke out of its ascending triangle pattern, reversing the long-term bearish trend. SHIB faces resistance around $0.00001 while finding support at approximately $0.00000800.
Shiba Inu’s (SHIB) recent rally is believed to be driven by lead developer Shytoshi Kusama’s latest blog and rumors surrounding the imminent launch of the project’s layer-2 network, Shibarium, later this month. However, despite these developments, the rally could not be sustained. Adding to the challenge is the overall downturn in the larger crypto market, making it unlikely for a SHIB rally to have a significant impact.
Shiba Inu (SHIB) Price Analysis and Prospects Amidst Fibonacci Retracement
According to the Fibonacci retracement analysis, the popular crypto token Shiba Inu (SHIB) could decline to approximately $0.00000775 before stabilizing or initiating an upward movement. Notably, this price level has significant volume support, as indicated by the Visible Range Volume Profile indicator, which shows a strong trading volume cluster between 0.00000875 and 0.000008. This suggests a considerable likelihood of the price recovering once it reaches this particular support range.
While the prospect of the SHIB token achieving yearly highs could be boosted by the potential launch of the Shibarium network by the SHIB team this month, there is also a possibility of further decline after a consolidation period, given the current lack of substantial momentum in the larger cryptocurrency market. Bitcoin (BTC) continues to experience negative price trends, declining by 1.3% in the weekly charts. As BTC’s positive strides are crucial for broader market sentiment, SHIB’s upward movement may remain limited until BTC shows signs of recovery. At the time of writing, SHIB was trading at $0.00000910, experiencing a 0.7% decrease in the last hour.