The price of popular memecoin Shiba Inu (SHIB) has seen significant volatility in recent weeks following a breakout above resistance at $0.000007879 in late October. However, SHIB has struggled to maintain its momentum above this key level, bringing into question the sustainability of the breakout.
Keypoints
- The Shiba Inu price recently broke out above resistance at $0.000007879 but has struggled to sustain momentum and remain above this level. There is some uncertainty whether this breakout will hold or end up being a “fakeout.”
- SHIB is currently trading in a narrow range between $0.00000785 to $0.000010758 as it consolidates. Breaking out of this range could signal the next directional move.
- If SHIB fails to follow through on the recent breakout and closes back below $0.0000706, it could trigger increased selling pressure down to around $0.0000106.
- The 20, 50 and 100-day EMAs are currently providing support for SHIB buyers. However, the MACD is closing in on a bearish crossover which could reflect weakening upside momentum.
- A Netherlands-based exchange recently transferred over $34 million worth of SHIB tokens to an unknown wallet, sparking speculation.
- The Shiba community has been burning large amounts of SHIB tokens lately, over 100 million in the past 24 hours, to try to improve tokenomics. But this is causing price volatility.
- Overall there is uncertainty in the near-term trajectory for SHIB with technicals pointing to potential weakness but community token burning efforts helping provide some optimism. The next few days of price action could determine the next major move.
Currently, SHIB is consolidating between $0.00000785 and $0.000010758 as bulls and bears battle for control. Technical indicators are pointing to potential weakness in the upside momentum, with the MACD closing in on a bearish crossover. A failure by SHIB to sustain itself above the breakout point around $0.0000706 could open the doors for increased selling pressure, with the next major support level sitting around $0.0000106.
Adding to the uncertainty has been the massive transfer of over $34 million worth of SHIB tokens from a Netherlands-based exchange to an unknown wallet. This large movement of coins has sparked speculation within the crypto community.
On the other hand, the persistent burning of SHIB tokens by the Shiba community is helping provide optimism. Over 100 million SHIB have been burned in just the last 24 hours as part of an effort to improve tokenomics. But this activity has also led to price volatility.
Traders will be closely watching to see whether SHIB can maintain its footing above key support around $0.0000706. If not, SHIB could be in for a more significant correction as technicals reflect weakening bullish momentum.
