Shiba Inu (SHIB) is making a comeback after two days of significant price decline driven by whale activity. The meme coin’s value dropped to a low of $0.00002434 earlier this week, reflecting an 11.72% decline over the past seven days. However, SHIB’s price has since rebounded, climbing 0.99% in the last 24 hours to reach $0.0000272.
Market Liquidity Fuels Recovery
As an established meme coin, Shiba Inu benefits from ample market liquidity, which supports rising demand during price rebounds. Current market data shows SHIB’s trading volume at $2.28 billion. While this figure has declined on a daily basis, it underscores the active trading by SHIB whales and retail investors. This activity indicates growing interest in the token’s potential recovery.
Related article: SHIB Burn Rate Skyrockets: Can It Boost the Price?
Shiba Inu’s next goal is to reclaim the $0.00003 price mark, a key resistance level. If achieved, it could push SHIB’s weekly high beyond $0.000033. Technical indicators support this outlook. The Relative Strength Index (RSI) currently stands at 42.56, suggesting room for growth.
Source: CoinMarketCap
Meanwhile, the Moving Average Convergence Divergence (MACD) indicator on the SHIB/USDT 4-hour chart points to a possible bullish trend. The MACD line is close to crossing above the signal line, and if this crossover occurs, SHIB’s price could surge toward the $0.00004 level.
Bearish Risks Remain
Despite bullish signals, SHIB faces risks. If the bullish momentum falters, the token may retest the $0.0000244 support level. This bearish scenario could unfold if whale activity slows or if broader market conditions turn negative.
Related article: SHIB Sell-Off: Nearly a Trillion Tokens Unleashed by Whales
Shiba Inu’s recent performance has played out amid market uncertainty and profit-taking from over-leveraged positions. Critics within the broader cryptocurrency community have fueled Fear, Uncertainty, and Doubt (FUD). However, Shiba Inu’s development team has taken steps to restore confidence. By emphasizing product development and key milestones, they aim to reassure the community about SHIB’s long-term potential.
Community optimism remains high, thanks to ongoing developments like the Shibarium transaction boom and the rising Shiba Inu burn rate. These factors signal progress in the project’s ecosystem, driving hope for a sustained price recovery. If these positive trends continue, SHIB could maintain upward momentum in the coming days.
