Shiba Inu Price Prediction: Is Shibarium The Key To A Trend Reversal?
August 02 2023 - 9:00AM
NEWSBTC
In recent weeks, the meme coin Shiba Inu (SHIB) has shown signs of
recuperation, gradually recovering from its yearly low of
$0.00000597, reached on June 10. SHIB was following the pawprints
of its rival, Dogecoin (DOGE), which recently garnered momentum
following a profile update from Elon Musk. As the value of SHIB
began to move upward, anticipation around the forthcoming release
of Shibarium, a layer 2 solution, also began to ripple through the
investor community. The announcement that Shibarium will be
unveiled at the Blockchain Futurist Conference held from August
15-16, 2023, in Canada, ignited a flicker of optimism. However,
there is still no clear confirmation for a trend reversal from a
technical perspective for SHIB. Can Shiba Inu Finally Enter Bullish
Territory? While DOGE has already breached the threshold of the
200-day EMA (Exponential Moving Average) – a widely respected
metric in chart analysis – SHIB has yet to break through this key
technical indicator. In simplified terms, an asset above the
200-day line indicates an uptrend, while trading below suggests a
downtrend. Related Reading: Shibarium Hype: Shiba Inu Whales Boost
Appetite, Snag 1 Trillion SHIB Tokens A classical approach would
recognize a strong buy signal when the price moves from below to
above the trend line. Investors with an eye on SHIB continue to
await for this buy signal. This is despite the meme coin currently
trading 55% higher compared to its low on June 10. Remarkably, the
recent positive price trend did enable SHIB to ascend beyond the
50-day EMA (orange), a modest victory in its own right. At the
moment, SHIB faces an uphill battle against the 100-day EMA, priced
at $0.00000840. As of press time, Shiba Inu traded just shy of this
mark, at $0.00000830. Another bullish argument is that the meme
coin recently broke out of the ascending triangle formation that
had held it captive since mid-June. SHIB should not fall back below
the formation’s former resistance at $0.00000831 to confirm the
breakout. Remarkably, the 23.6% Fibonacci retracement level is also
at this level, making this price twice as important. If Shiba Inu
can maintain its current position and use the 23.6% Fibonacci level
as support, it could successfully break above the horizontal
resistance around $0.00000870. Then, a subsequent jump to the
bullish boundary – the 200-day EMA at $0.00000933 – could be on the
cards. Should SHIB bulls accomplish this feat, the price would
technically trigger a buy signal. This could potentially pave the
way for a further surge, with the next resistance looming at the
38.6% Fibonacci retracement level of $0.00000976. Related Reading:
Shiba Inu Reclaims 14th Spot In Market After 5% Jump At this point,
substantial selling pressure can be expected, given that this price
level functioned as strong support from early March to early May
this year. Additional price targets are the 50% Fibonacci
level at $0.00001093 and the 61.8% Fibonacci level at $0.00001209.
A bearish scenario would be triggered if SHIB fails to sustain the
breakout above $0.00000831 on the 1-day chart. A drop to the
previous month’s low of $0.00000709 could be in the offing. Holding
this price level will be critical to avoid revisiting the year’s
low at $0.00000597. Yet, with the much-anticipated launch of
Shibarium less than a month away, this bearish scenario appears
less probable. The question that investors are grappling with: Will
Shibarium be the catalyst that finally signals a trend reversal for
Shiba Inu? Only time will reveal the answer. Featured image from
BTCC, chart from TradingView.com
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