DeFi & NFT

Story: Shiba Inu Holds Key Support as Rebound Signals Strength

By Maheen Hernandez

1 / 15

Shiba Inu (SHIB) is currently stabilizing above a significant demand zone, with price action and technical indicators pointing toward a possible short-term recovery.

2 / 15

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…

3 / 15

Oversold RSI Hints at Reversal Potential

4 / 15

One of the strongest arguments for a potential recovery comes from the stochastic Relative Strength Index (RSI), which is approaching oversold territory.

5 / 15

Historically, oversold RSI conditions near key support levels have provided a foundation for trend reversals.

6 / 15

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…

7 / 15

A decrease in active addresses generally reflects reduced engagement and transaction activity on the network.

8 / 15

However, this drop in activity has been counterbalanced by a notable increase in SHIB exchange inflows.

9 / 15

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…

10 / 15

Technical Structure Holds Despite Pullback

11 / 15

From a price action perspective, SHIB continues to maintain a bullish structure despite the recent correction. The pullback from the $0.

12 / 15

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.

13 / 15

Outlook: Bullish Potential If Support Holds

14 / 15

The current scenario presents a balance between positive technical indicators and weaker fundamentals.

15 / 15

Nonetheless, the recent uptick in exchange inflows and the resilience of the $0.00001413 support level provide grounds for cautious optimism.

The Currency Analytics

Want the full story?