The price of popular memecoin Shiba Inu (SHIB) has shown signs of a potential trend reversal in recent trading activity. After months in a downtrend, technical analysis and fundamental developments point to a shifting momentum for the self-proclaimed “Dogecoin killer.”
On the technical front, SHIB has broken out above key resistance at $0.000008 after forming an ascending triangle pattern on its chart. This decisive breakout on above-average volume suggests buyers are regaining control and signals a continuation of the prior uptrend.
Source: altFINS
SHIB surged to a high of $0.000010 before facing rejection at its 200-day moving average, a key long-term barrier. A pullback to retest support around the $0.000008 breakout point is expected at this stage. This could create an attractive swing entry for traders watching the developing bullish momentum.
The MACD and RSI indicators turned bullish leading up to SHIB’s upside breakout, reflecting growing positive momentum. However, the stall at resistance has caused momentum to show signs of waning in the short-term. Continued defense of support and break of overhead resistance is needed to sustain the rally.
On the fundamental side, the anticipation of major Shiba Inu ecosystem launches has driven community excitement. Shibarium, a layer-2 scaling solution similar to Polygon, is slated to launch soon to improve transaction speeds and reduce fees. This could significantly expand SHIB’s utility.
Additionally, the project’s lead developer Shytoshi Kusama has unveiled plans to incorporate self-sovereign identity solutions into Shibarium. Other ecosystem tokens like BONE have also seen major rallies, reflecting investor enthusiasm.
This pattern of memecoins outpacing bitcoin and major altcoins during nascent bull runs has become somewhat of a trend in crypto markets. When the market rebounds from stagnation, speculative assets like memecoins tend to pump first as traders look for exciting opportunities.
Some analysts say the excitement and speculation generated by memecoins is precisely what the crypto sector needs right now after weeks of boring price action.
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