In recent weeks, Shiba Inu (SHIB), the popular meme coin, has made a recovery from its yearly low of $0.00000597 reached on June 10. As SHIB follows in the footsteps of its rival, Dogecoin (DOGE), it seems that the forthcoming release of Shibarium, a layer 2 solution, is generating anticipation within the investor community.
The announcement that Shibarium will be unveiled at the Blockchain Futurist Conference in Canada from August 15-16, 2023, has sparked a flicker of optimism. However, there is no clear confirmation of a trend reversal from a technical perspective for SHIB at the moment.
Can Shiba Inu Enter Bullish Territory?
While DOGE has surpassed the 200-day Exponential Moving Average (EMA), a respected metric in chart analysis, SHIB has yet to break through this key technical indicator. Typically, an asset above the 200-day line indicates an uptrend, while trading below suggests a downtrend.
Currently, investors are eagerly awaiting a strong buy signal for SHIB as it continues to trade 55% higher than its June 10 low. Although SHIB has managed to surpass the 50-day EMA, it still faces a challenge in climbing above the 100-day EMA, priced at $0.00000840.
One argument in favor of a bullish trend is that SHIB recently broke out of an ascending triangle formation that had constrained its price since mid-June. To confirm the breakout, SHIB must stay above the formation’s former resistance level at $0.00000831.
If SHIB can maintain its current position and use the 23.6% Fibonacci retracement level ($0.00000831) as support, it could potentially break above the horizontal resistance at $0.00000870. This could lead to a jump towards the bullish boundary at the 200-day EMA ($0.00000933).
Reaching the 38.6% Fibonacci retracement level ($0.00000976) would trigger a buy signal, but strong selling pressure can be expected at this level due to it previously acting as strong support from March to May. Additional price targets include the 50% Fibonacci level at $0.00001093 and the 61.8% Fibonacci level at $0.00001209.
A bearish scenario would come into play if SHIB fails to sustain the breakout above $0.00000831 on the 1-day chart, potentially causing a drop to the previous month’s low of $0.00000709. Holding this price level would be critical to avoid revisiting the yearly low at $0.00000597.
However, with the upcoming launch of Shibarium in less than a month, the bearish scenario seems less likely. The question remains whether Shibarium will be the catalyst for a trend reversal in Shiba Inu. Only time will reveal the answer.
Shiba Inu (SHIB) has slowly recovered from its yearly low, with the upcoming release of Shibarium generating anticipation within the investor community. However, there is still no clear confirmation of a trend reversal for SHIB from a technical standpoint. While the meme coin has shown positive price trends, it still faces challenges in surpassing key technical indicators. The launch of Shibarium could potentially impact SHIB’s future trends, and investors are eagerly awaiting its release.
What is Shibarium?
Shibarium is a layer 2 solution that is set to be released alongside the Blockchain Futurist Conference in Canada. It is a highly anticipated development for Shiba Inu (SHIB) and has generated optimism within the investor community.
What is the 200-day EMA?
The 200-day Exponential Moving Average (EMA) is a widely respected metric in chart analysis. It indicates whether an asset is in an uptrend or a downtrend. An asset trading above the 200-day line suggests an uptrend, while trading below suggests a downtrend.
What is an ascending triangle formation?
An ascending triangle formation is a bullish chart pattern that suggests upward price movement. It is characterized by a flat top trendline and an ascending bottom trendline. SHIB recently broke out of this formation, which is viewed as a positive signal by traders.
What is the Fibonacci retracement level?
The Fibonacci retracement level is a technical analysis tool that identifies potential support and resistance levels based on Fibonacci ratios. Traders often use these levels to determine potential price targets or reversal points.