SHIB, the token that powers the second largest meme coin, Shiba Inu is up 15% and trading at $0.00001120 at the time of writing. Shiba Inu price retested the critical downtrend support line earlier in March—and recovered, implying that the trend was poised to reverse direction to the north.
Before the correction to $0.00001, which coincided with the aforementioned trend line, SHIB broke out in January, rallying 96% to a new annual high of $0.00001576 in early February.
Despite a double-digit move over the past 24 hours, the Shiba Inu needs to check a few boxes before investors can fully confirm the new bull market. For now, let’s dive into the analysis to find out what factors are at play to confirm or cancel the uptrend.
Shiba Inu Price Technical Perspective Assessment – Daily Chart
The second most popular meme coin, with a market cap of $6.6 billion, is trading at $0.00001120. Over the past 24 hours, the Shiba Inu has seen trading volume jump 30% to $321 million, hinting at increased accumulation among investors who expect a much bigger price move in the next few days.
However, the 100-day exponential moving average (EMA) (blue line) is currently limiting the price move below $0.00001126. A break above this key moving average remains critical for SHIB to sustain a breakout from the downtrend line.
Despite the current resistance, key momentum indicators such as the Moving Average Convergence Divergence (MACD) reveal a determined bullish front. After the Shiba Inu fell along with the rest of the market due to the collapse of Silicon Valley Bank (SVB), the MACD gave a buy signal on the daily time frame chart.
Investors are likely to keep their long positions in SHIB intact as long as the MACD line in blue holds above the signal line in red. Furthermore, the momentum indicator should generally move towards the midline at 0.00 and the positive area above it – this would help improve confidence in the uptrend.
Even so, the Shiba Inu’s recovery is unlikely to be smooth sailing, given potential resistance at the 200-day EMA (purple line) at $0.000012 and seller congestion areas at $0.000014 and $0.000018 respectively .
Shiba Inu price looks at another move of 34% – 4-hour chart
MACD maintains a buy signal on the 4-hour chart, but this time it is holding above the median line. Buyers are determined to hold on to accumulated gains, especially during this week’s rally ahead of the Federal Reserve’s decision on a possible rate hike on March 22.
Shiba Inu’s price is above the 100-day EMA, which is holding at $0.00001110 on the 4-hour chart. Remember, on a daily chart, the 100-day EMA is immediate resistance.
A daily close above $0.00001110 could serve as confirmation that support is intact and the path of least resistance is to the upside.
The second and most noticeable aspect of the 4-hour chart is the 200-day EMA resistance at $0.00001148. If SHIB turns this level into near-term support, it could attract more interest from retailers, especially those on the margins and undecided.
Failure to clear this hurdle (200 days) could prove detrimental to the Shiba Inu bulls as the bears will take the opportunity to try to push the price below $0.00001110 while again eyeing a retest of $0.00001.
However, the Shiba Inu still has another hidden card, which if played well could propel the meme coin 34% north of the 200-day EMA to a high above $0.000015. For such a breakout to materialize, the Shiba Inu price would have to break out of the falling wedge pattern, as shown on the four-hour chart.
Shiba Inu’s Shibarium Beta release is clouded by Code Drama
Shibarium, the Shiba Inu scaling protocol released its beta version last week. Note that the beta testnet refers to a blockchain protocol designed to function in the same way as the mainnet.
Testnet allows developers to test a product, upgrade or even new features in a real-time environment before being released to the mainnet blockchain.
However, the hype surrounding the Layer 2 solution provider was quickly washed away after a high-ranking community member took to Shiba Inu’s Discord channel and expressed concern that the development team was using a similar Chain ID for another existing protocol.
“Chain ID is the simplest thing that every Blockchain dev first looks for when implementing a Blockchain. Using an ID that already exists is simply incompetent as your chain would not function properly and anyone trying to communicate with your chain would be communicating with another chain instead,” wrote community member Steve on the Discord channel.
The protocol Steve was referring to is called renia, and the Shiba Inu development team has been accused of changing the name to rinia. Despite the accusations, some developers in the community sided with the Shiba Inu team – “the code forks all the time. Moreover, there is no confirmation that it is,” Jesus replied on the Discord channel.
“Even if part of the code was used in the beta version it does not mean that it is all. For me, it is very doubtful that it is a direct fork with nothing changed. Forking and building on already established software is the core foundation of what FOSS (Free and Open Software) stands for,” “Justinlime,” another community defended the team.
Despite the support of other developers in the community, it might take a lot of effort to clean up Shibarium as an original protocol.
Buy a Shiba Inu now.
Shiba Inu alternatives to buy
If you are looking for other high-potential crypto projects in addition to SHIB, we reviewed the 15 best cryptocurrencies for 2023, according to analysis CryptoNews Industry Talk Team.
The list is updated weekly with new altcoins and ICO projects.
Disclaimer: The Industry Talk section contains insights from players in the crypto industry and is not part of the editorial content of Cryptonews.com.
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