DeFi & NFT
By Maheen Hernandez
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Shiba Inu (SHIB) is currently stabilizing above a significant demand zone, with price action and technical indicators pointing toward a possible short-term recovery.
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At the time of writing, SHIB was trading just above the $0.00001413 support level. This price area has acted as a demand zone in previous cycles, where buyers stepped in to…
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Oversold RSI Hints at Reversal Potential
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One of the strongest arguments for a potential recovery comes from the stochastic Relative Strength Index (RSI), which is approaching oversold territory.
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Historically, oversold RSI conditions near key support levels have provided a foundation for trend reversals.
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Despite the positive technical outlook, some on-chain metrics are sending mixed signals. Data from CryptoQuant shows that the number of active SHIB addresses has been in decline…
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A decrease in active addresses generally reflects reduced engagement and transaction activity on the network.
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However, this drop in activity has been counterbalanced by a notable increase in SHIB exchange inflows.
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Given the price’s proximity to a demand zone and the presence of technical support, the rising inflows could indicate that traders are preparing for a possible breakout rather…
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Technical Structure Holds Despite Pullback
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From a price action perspective, SHIB continues to maintain a bullish structure despite the recent correction. The pullback from the $0.
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The ability to remain above the $0.00001413 level is significant. It shows that buyers are still willing to step in at this zone, which helps maintain upward pressure.
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Outlook: Bullish Potential If Support Holds
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The current scenario presents a balance between positive technical indicators and weaker fundamentals.
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Nonetheless, the recent uptick in exchange inflows and the resilience of the $0.00001413 support level provide grounds for cautious optimism.
The Currency Analytics
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