Shiba Inu (SHIB) Recovers After Tuesday’s Sell-off But is the Strength Temporary?
Aiswarya Gopan • 2 min read
Shiba Inu (SHIB) appears to be making its way back up after the sharp slide over the past couple of sessions, reclaiming the key $0.0000060 level, enjoying the somewhat bullish mood among investors after market leader Bitcoin bounced back above the $30k mark. At the time of writing, SHIB/USDT is trading at around $0.0000063.
The emerging memecoin has gained almost 7% of its value since the previous session, but technicals indicate that this could be a temporary bounce as the market sentiment remains the dominant factor driving moves in Shiba Inu at the moment. And there’s no denying a cautious mood towards cryptocurrencies in general amid traders at the moment – the recent sell-offs driven by fear owing to digital currencies coming under fire from regulatory authorities around the world have caused many retail investors to run away from the market lately.
In addition to the overall sentiment, further increase in the Shiba Inu’s token can be driven in case the online community, also known as SHIBArmy, rallies and generates higher interest in trading SHIB in the coming days and weeks. For a relatively new entrant into the crypto sector, the memecoin has the backing of a strong community of users online, with the subreddit for SHIBArmy crossing 200k subscribers.
On the fundamentals’ side, with no new developments to report within the Shina Inu ecosystem, the main point of interest remains the recently launched DEX – ShibaSwap. Although the TVL within the DEX has dipped slightly to $1.43 billion till date, it still offers a great way for SHIB holders to profit and put their assets to use. Currently, ShibaSwap offers a way for users to exchange their SHIB tokens against other tokens within the ecosystem, including LEASH and BONE, but the exchange also offers options for UNI V2-LP and SLP token holders to earn BONE bonuses on the platform.
Key Levels to Watch
There seems to be some immediate interest among buyers, with the 10 and 20 EMA, SMA as well as MACD and momentum indicators in the H4 chart of SHIB/USDT revealing a bullish bias. However, bearish pressure still remains, as indicated by the remainder of the moving averages on the price chart.
The price has some catching up to do with the immediate support at $0.0000061 and the pivot point which sits at $0.0000070, for a bullish sentiment to be confirmed. In case the market sentiment deteriorates further or selling pressure increases, we could see Shiba Inu test the next support at $0.0000056.
An upswing would have to take the price back up above the key $0.0000070 level towards testing the first resistance level at $0.0000075.