Charting a 32% Recovery Through Market Imbalance Towards a Bullish Rally

Shiba Inu (SHIB), the meme coin that captured the crypto world’s hearts with its “pet dog charm,” is currently in an uncertain situation.

The price of SHIB is rather Somewhat predictable behavior Compared to last year, it fell to a low of $0.00001266 after breaking out of the descending triangle on June 14. However, as the overall BTC market recovered, the meme coin has recovered 32% from its recent lows. At the time of writing, SHIB is trading at around $0.00001673 According to CoinMarketCap, 24-hour trading volume during European business hours on Wednesday was $266.33 million, representing a 28.44% decrease over the past 24 hours.

sauce: CoinMarketCap

Market Imbalances and Fair Value Gaps

Source: Coingape

SHIB’s price movement is currently trending below the 2-day, 50-day and 200-day Simple Moving Averages (SMA), which is not a bullish sign for the asset. Just below the recent lows is an area of ​​market imbalance that SHIB’s price must fill before it can fully reverse. To be precise, SHIB may need to fall 30% from its current price to fill the Fair Value Gap (FVG) of approximately $0.000011. However, the faster Shiba Inu clears this area, the sooner it can begin to rise.

Resistance zones, upside potential and bullish technical indicators

The 21-day SMA has been acting as a resistance level for the past 33 days. A breakout above this indicator can lead to further upside. The tightest resistance zone is between $0.0000168 and $0.0000195. If SHIB can break out of this, it can surge to $0.0000336 but is occasionally finding resistance around $0.0000236 and $0.00002998.

Source: Coingape

Currently, the Relative Strength Index (RSI) is trending up at 44.4, indicating bullish sentiment, however, it is still below the crucial midpoint level to confirm bullish dominance in the uptrend.

Chaikin Money Flow (CMF) recently rose above the zero line, indicating that bullish pressure is starting to prevail.

Overall, the ongoing token burn and ever-growing Shibarium ecosystem are Shiba Inu’s main selling points. However, it’s important to keep an eye on the $0.00001074 support level. Keeping SHIB above this level will be crucial for a sustained upside.

Additionally, the departure of Shiba Inu’s lead developer, Hidetoshi Kusama, has added uncertainty to the project, which could impact the future direction of the coin.


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