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SHIB, the token powering the second-largest meme coin, Shiba Inu flew 15% to trade at $0.00001120 at the time of writing. Shiba Inu price retested critical descending trendline support earlier in March—and rebounded, implying the trend was ready to change course northwards.
Before the correction to $0.00001, which coincided with the above-mentioned trendline, SHIB had broken out in January, lifting 96% to a new yearly high of $0.00001576 by early February.
Despite the double-digit move in the last 24 hours, Shiba Inu must tick a few boxes before investors can fully confirm a new bull market. For now, let us dive into the analysis to figure out what factors are in play to either validate or invalidate the uptrend.
Evaluating Shiba Inu Price Technical Outlook – Daily Chart
The second-most popular meme coin, boasting $6.6 billion in market capitalization, is trading at $0.00001120. In the last 24 hours, Shiba Inu has seen its trading volume jump by 30% to $321 million, hinting at increased accumulation among investors who anticipate a much bigger move in the price over the coming few days.
However, the 100-day Exponential Moving Average (EMA) (line in blue) currently caps price movement under $0.00001126. A break above this key moving average remains critical for SHIB to uphold the breakout from the falling trendline.
Despite the immediate resistance, key momentum indicators like the Moving Average Convergence Divergence (MACD) reveal a determined bullish front. After Shiba Inu dumped alongside the rest of the market due to the collapse of Silicon Valley Bank (SVB), the MACD flashed a buy signal on the daily timeframe chart.
Investors are likely to keep their long positions in SHIB intact as long as the MACD line in blue holds above the signal line in red. Furthermore, the momentum indicator should generally move toward the mean line at 0.00 and the positive region above it – this would help improve confidence in the uptrend.
Nevertheless, Shiba Inu’s recovery journey is unlikely going to be smooth, considering the potential resistance at the 200-day EMA (line in purple) at $0.000012, and the seller congestion areas at $0.000014 and $0.000018, respectively.
Shiba Inu Price Eyes Another 34% Move – 4-Hour Chart
The MACD sustains the buy signal on the four-hour chart, but this time, it is holding above the mean line. Buyers are determined to hold onto the accrued gains, especially during this week’s recovery ahead of the Federal Reserve decision on a possible interest rate hike on March 22.
Shiba Inu price is sitting above the 100-day EMA, which is holding at $0.00001110 on the four-hour chart. Remember, on the daily chart, the 100-day EMA is the immediate resistance.
A daily close above $0.00001110 could serve as confirmation that support is intact and the path with the least resistance is to the upside.
The second and most conspicuous aspect of the four-hour chart is the 200-day EMA resistance at $0.00001148. If SHIB flips this level into short-term support, it could attract more interest from retail traders, especially those on the sidelines and undecided.
Failure to ease through this hurdle (200-day) might prove detrimental to Shiba Inu bulls because bears will seize the opportunity and try to push the price below $0.00001110 while eyeing a retest of $0.00001.
That said, Shiba Inu still has another hidden card, which if played well, could launch the meme coin 34% north of the 200-day EMA to highs above $0.000015. For such a breakout to materialize, Shiba Inu price would have to push out of the falling wedge pattern, as illustrated on the four-hour chart.
Shiba Inu’s Shibarium Beta Release Clouded In Code Drama
Shibarium, the Shiba Inu scaling protocol released its beta version last week. Note that a beta testnet refers to a blockchain protocol designed to function in the same way as the main network.
The testnet allows developers to test a product, an upgrade, or even new features in a real-time environment before they are released on the mainnet blockchain.
However, the hype surrounding the layer-2 solutions provider was quickly washed out after a high-ranking community member took to Shiba Inu’s Discord channel and raised concerns about the development team using a similar Chain ID to another existing protocol.
“Chain ID is the simplest thing any Blockchain dev looks for first when deploying a Blockchain. Using an ID that already exists is just incompetent as your chain wouldn’t work properly and everyone trying to interact with your chain would instead interact with the other chain,” Steve a community member wrote in the Discord channel.
The protocol Steve was referring to is called renia, with Shiba Inu development team accused of changing the name to rinia. Despite the allegations, some developers in the community threw their weight behind the Shiba Inu team – “code is forked all the time. Moreover, there is no confirmation that it was,” Jesus replied on the Discord channel.
“Even if some of the code was used in the beta does not mean all of it was. To me, it’s very doubtful that it’s a direct fork with nothing changed. Forking, and building upon already established software, is the core foundation of what FOSS (free and open-source software) stands for,” “Justinlime,” another community defended the team.
Despite the support from other developers in the community, it might take a lot of effort to clear Shibarium as an original protocol.
Shiba Inu Alternatives To Buy
If you’re looking for other high-potential crypto projects alongside SHIB, we’ve reviewed the top 15 cryptocurrencies for 2023, as analyzed by the CryptoNews Industry Talk team.
The list is updated weekly with new altcoins and ICO projects.
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
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