Potential Doge killer Shiba Inu is trading slightly upbeat, attempting a recovery after the drop in the previous session as the market sentiment improves with Bitcoin climbing back up above $37,000 once again. At the time of writing, SHIB/USDT is trading around $0.0000062.

However, despite the slight recovery currently underway, the outlook for the memecoin remains bearish after its DEX ShibaSwap experienced a crash in TVL from over $2 billion shortly after its launch to under $500 million. The TVL now sits at a little above $430 million at press time, and could be driven by investors pulling their funds out from the DEX as the bonus period comes to a close.

Although, experts are not ready to dismiss the potential of the Shiba Inu coin just yet. Steve Ehrlich, CEO and Co-founder of Voyager Digital, remains hopeful that the strong community the crypto has amassed since its launch can keep it supported in the near future. Its design focuses on being completely community driven and governed, bringing with it decentralization in its true sense.

In the absence of significant fundamental developments in the Shiba Inu ecosystem, technicals and market sentiment are likely to dictate the price action in the SHIB token in the near-term. The cryptocurrency could enjoy support as long as investor sentiment towards market leader Bitcoin remains favorable and turn around as soon as the coin’s value drops.

Key Levels to Watch

On the H4 price chart of SHIB/USDT, moving averages and the MACD indicator are exhibiting a strong bearish bias. However, the momentum indicator is flashing buy at the moment as well, suggesting interest among buyers to enter the market as well.

The price is holding just below the pivot point at $0.0000063. An increase in bearish pressure can see Shiba Inu’s price head lower to test the immediate support at $0.0000057, and a breakdown of this level can take the price further lower towards $0.0000050 where the next support level sits.

On the other hand, an increase in buying pressure can turn things around and see SHIB head higher, past the pivot point to test resistance at $0.0000069.