- Shiba Inu (SHIB) has surged over 7% following Donald Trump’s lead in the US presidential election, with technical indicators suggesting a potential rally if the price breaks above key resistance levels.
- The Shiba Inu team’s proposal for a Strategic Hub for Innovation and Blockchain has further fueled investor optimism, though risks remain if the price fails to sustain its upward momentum.
Shiba Inu (SHIB) has been making waves in the cryptocurrency world, with its price rallying more than 7% in recent days. This surge follows a significant development: former President Donald Trump has taken a clear lead in the 2024 US presidential race. The combination of this political shift and technical indicators suggests that SHIB could be on the verge of a larger rally, potentially reaching its June highs. But will it break through the critical resistance levels?
SHIB’s Breakout Potential: Key Resistance Ahead
Currently, Shiba Inu is approaching a crucial descending trendline, formed by joining multiple highs since March. If SHIB manages to break through this trendline and closes above the key resistance level of $0.000020, the meme coin could rally by as much as 30%. This move would bring the price close to its June 5 high of $0.000026, a significant price point for SHIB traders and investors alike.
The technical indicators are also showing signs of bullish momentum. The Moving Average Convergence Divergence (MACD) indicator is about to flip to a bullish crossover, which typically signals upward movement. Additionally, the Relative Strength Index (RSI) is at 58, indicating that SHIB is trending toward bullish territory, with more momentum expected to build.
Bullish Sentiment Boosted by Trump’s Election Lead
The price surge has been fueled by an overall uptick in the cryptocurrency market, particularly as Trump’s lead in the US presidential race captures the market’s attention. However, the excitement surrounding Shiba Inu is not just about the election. The Shiba Inu team has proposed a bold initiative to reshape the US crypto landscape with the creation of a Strategic Hub for Innovation and Blockchain (SHIB) in a city dubbed the “Silicon Valley of Crypto.” This proposal, aimed at stimulating economic growth and reinforcing the US’s leadership in emerging technologies, has sparked investor enthusiasm.
With such developments, Shiba Inu’s long-to-short ratio has also seen a significant increase, reaching 1.03—its highest level since October. This shift indicates that more traders are betting on a price rise, further fueling the bullish outlook for SHIB.
What Could Go Wrong? Risks to Watch
While the outlook for Shiba Inu looks promising, there are still risks that could lead to a price pullback. If SHIB fails to break above the descending trendline and closes below the September 30 low of $0.000015, it could face a 14% drop, potentially testing its September 18 low of $0.0000129. Such a scenario would invalidate the bullish thesis, leading to a more cautious sentiment in the market.
In conclusion, while Shiba Inu’s price is poised for a potential rally, it will need to break through key resistance levels to sustain this momentum. With political and technical factors aligning, SHIB’s price movement in the coming days could be crucial for both traders and long-term investors.
