Shiba Inu (SHIB) is flashing early signs of a trend reversal after falling to its lowest price in over a year. With momentum indicators turning positive and investor sentiment improving across the broader crypto market, analysts are beginning to forecast a short-term rally that could send SHIB up by as much as 17% in the coming days.

The recovery comes at a crucial time for the asset, which had been under heavy selling pressure for weeks before bouncing off a multi-year low. Now, technical charts suggest SHIB may be ready to stage a comeback.

SHIB Hits a 16-Month Low Before Bouncing Back

On June 22, Shiba Inu briefly dropped to its lowest level since early 2023. The sell-off was part of a broader downturn affecting the entire crypto market, fueled by geopolitical uncertainty and declining investor risk appetite.

However, that trend began to reverse as news of a ceasefire agreement between Israel and Iran triggered a relief rally in global markets. Shiba Inu was among the altcoins that benefited the most, rebounding nearly 16% from its weekend low to trade at $0.00001162 as of Tuesday.

The recovery has drawn renewed interest from traders and analysts alike, especially as key momentum indicators began to flash bullish signals.

MACD Flashes Bullish Crossover for First Time in Over a Month

One of the most significant technical developments is the bullish crossover on SHIB’s Moving Average Convergence Divergence (MACD) indicator. For the first time in 39 days, the MACD line crossed above the signal line—a pattern often seen as a strong buy signal.

The MACD is a popular tool used to gauge trend direction and momentum. When the MACD line rises above the signal line, it typically indicates growing buying strength and an early sign of a possible price breakout.

This crossover suggests a potential shift in market sentiment and a break from the downtrend that had dominated SHIB’s chart throughout June.

CMF Indicator Points to Strong Capital Inflows

Backing up the bullish case is the behavior of the Chaikin Money Flow (CMF) indicator, which measures the volume-weighted average of accumulation and distribution over a period of time.

As of this writing, the CMF for SHIB sits at +0.15, firmly in positive territory. This level indicates strong capital inflows and growing buying pressure. A rising CMF typically reflects that more money is entering the asset than leaving it—an important signal that buyers are outweighing sellers in the market.

When combined with the MACD crossover, the rising CMF creates a compelling technical case for an extended price recovery.

Potential Upside: Can SHIB Reach $0.00001362?

If the current momentum continues, analysts suggest that Shiba Inu could climb another 17% from its current levels, targeting the $0.00001362 price range. This level represents the next key resistance area, and a break above it could open the door for even more gains heading into July.

However, this bullish forecast depends on the strength of continued demand. If the overall crypto market remains stable and investor interest holds, SHIB could ride the wave of renewed optimism and outperform in the short term.

Key Risks: Profit-Taking and Market Reversals

Despite these promising signals, risks remain. The broader crypto market continues to be volatile, and any renewed uncertainty could trigger profit-taking among short-term traders.

Should sentiment shift again, SHIB could retrace toward its recent low of $0.00001004, a key support level that has so far held up during periods of selling pressure.

Traders and investors should monitor developments closely, including changes in volume, funding rates, and global macroeconomic trends that may influence crypto asset performance.

Final Thoughts

Shiba Inu’s recent rebound and technical breakout offer cautious optimism for a short-term rally. With the MACD flashing a bullish crossover and the CMF rising, the conditions are aligning for a potential 17% price surge.

Still, the road ahead remains uncertain. Whether SHIB can maintain its upward momentum depends largely on market stability and investor confidence. For now, the indicators point to a recovery in progress—but as always in crypto, caution is key.