The Shiba Inu price has risen over 5% in the last 24 hours amid the market-wide hype surrounding Ripple’s partial victory in its legal battle with the US Securities and Exchange Commission (SEC). But SHIB investors should still be cautious: While the SHIB price shows a clear uptrend of 23% over the last 30 days, a complete confirmation of a trend reversal is still pending.
Shiba Inu Price Analysis
Technically, the Shiba Inu price remains in bearish territory for several reasons. As explained in previous analyses, the Shib price entered a downtrend channel in early February this year. The breakout from the bearish chart pattern succeeded six days ago, however, there is still a possibility that it is a fakeout.
Shib’s trading volume was rather below average during and after the breakout. Only yesterday there was a noticeable increase. Within the last few hours, trading volume rose to $232 million, 200% higher than the previous day. In the best case, the volume should remain high to avoid a fakeout.
More of a bearish argument is that yesterday’s SHIB rally stopped at $0.00000813. Thus, the price could not break above resistance at $0.00000816, nor could it set a new local high on the 4-hour chart.
A look at the 1-day chart also shows that the SHIB price continues to trade below the 23.6% Fibonacci retracement level at $0.00000832. The following days could become crucial to confirm a sustainable trend change or a fakeout.
The battle between bulls and bears is still in full swing. The bull side would ideally like to break out above the 23.6% Fibonacci retracement level with a high trading volume. This could be a first confirmation for a sustainable trend change.
In this case, the 38.2% Fibonacci retracement level at $0.00000977 could come into focus. Close to it is also the long-term “bull boundary line”, the 200-day exponential moving average (EMA) at $0.00000961. If SHIB also exceeds this level, one can finally speak of a trend reversal. Before that, however, the current gains stand on shaky legs.
Shibarium As Catalyst
As NewsBTC reported, Shiba Inu chief developer Shytoshi Kusama has hinted a few days ago that the long-awaited layer-2 solution Shibarium will be unveiled along with numerous other innovations at the ETHToronto conference on August 15-16. With only 32 days left until this event, the hype could undoubtedly serve as a catalyst for SHIB. At least Shiba Inu ecosystem token BONE has already benefited from the announcement, raking in high double-digit percentage gains.
Just today, Kusama fueled anticipation for Shibarium when he announced the relaunch of the official Shiba Inu website Shib.io. Via Twitter, Kusama teased “Enjoying the summer of Shibarium.”
— Shytoshi Kusama™ (@ShytoshiKusama) July 13, 2023
Featured image from Twitter, chart from TradingView.com