- Shiba Inu (SHIB) remains stable above its key support at $0.0000108, signaling strong buying interest despite low trading volume.
- Oversold indicators suggest the token may be undervalued, hinting at a potential rebound if demand increases.
Shiba Inu (SHIB) could be gearing up for a potential rebound as technical indicators point to an undervalued setup, despite recent market weakness. The meme-inspired cryptocurrency narrowly avoided slipping into the dreaded five-zero price territory, thanks to strong buying demand around the $0.0000108 support level.
Strong Demand Keeps SHIB Afloat
According to an analysis by ForexDreamVantage, the $0.0000108 zone has become a key area for buyers defending SHIB’s price from further decline. The next resistance level sits near $0.0000119, while a breakout above $0.0000176 could confirm a much-anticipated trend reversal. However, the trader noted that this buy zone carries a large supply, requiring significant buying pressure to ignite upward movement.
On-chain data adds more insight into SHIB’s current state. The Chaikin Money Flow (CMF) indicator has remained in positive territory since October 18, suggesting that selling pressure has eased. Yet, analysts warn that this alone may not be enough to drive a strong recovery without a notable increase in trading activity.
Trading Volume and Indicators Paint a Cautious Picture
In the Spot market, Shiba Inu recorded about $181 million in 24-hour trading volume—well below its monthly average of $250 million. This dip in activity reflects investor hesitation amid uncertain market sentiment. At the same time, SHIB’s price continues to fluctuate around the middle-tier Bollinger Band, signaling a lack of decisive market direction.
Despite the sideways movement, one bullish indicator stands out—the Stochastic Relative Strength Index (StochRSI). Currently, the StochRSI shows SHIB in an oversold position, implying that the token may be undervalued compared to broader market conditions. While this doesn’t guarantee an immediate rally, it does hint at potential buying opportunities for traders watching for a rebound.
What to Watch Next
For Shiba Inu to confirm a recovery, analysts stress the importance of sustained volume growth and renewed interest from large holders, or “whales.” A strong move above $0.0000119 could set the stage for a bullish breakout, but failure to maintain support around $0.0000108 might invite more downside risk.
As of now, SHIB’s future hinges on whether bulls can gather enough strength to push through resistance and spark a lasting reversal.
ALSO READ:XRP Defies Market Volatility to Stay Among Top 15 Cryptos Since 2017
DISCLAIMER:
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of the publisher. The publisher does not endorse or guarantee the accuracy of any information presented in this article. We encourage our readers to conduct further research and consult additional sources before making any decisions based on the content provided.
About the Author
