Shiba Inu (SHIB) Shows Strength With 5% Rally, Reversal Confirmed?

Shiba Inu (SHIB) Shows Strength With 5% Rally, Reversal Confirmed?

The Shiba Inu price has risen over 5% in the last 24 hours amid the market-wide hype surrounding Ripple’s partial victory in its legal battle with the US Securities and Exchange Commission (SEC). But SHIB investors should still be cautious: While the SHIB price shows a clear uptrend of 23% over the last 30 days, a complete confirmation of a trend reversal is still pending.

Shiba Inu Price Analysis

Technically, the Shiba Inu price remains in bearish territory for several reasons. As explained in previous analyses, the Shib price entered a downtrend channel in early February this year. The breakout from the bearish chart pattern succeeded six days ago, however, there is still a possibility that it is a fakeout.

Shib’s trading volume was rather below average during and after the breakout. Only yesterday there was a noticeable increase. Within the last few hours, trading volume rose to $232 million, 200% higher than the previous day. In the best case, the volume should remain high to avoid a fakeout.

More of a bearish argument is that yesterday’s SHIB rally stopped at $0.00000813. Thus, the price could not break above resistance at $0.00000816, nor could it set a new local high on the 4-hour chart.

A look at the 1-day chart also shows that the SHIB price continues to trade below the 23.6% Fibonacci retracement level at $0.00000832. The following days could become crucial to confirm a sustainable trend change or a fakeout.

The battle between bulls and bears is still in full swing. The bull side would ideally like to break out above the 23.6% Fibonacci retracement level with a high trading volume. This could be a first confirmation for a sustainable trend change.

In this case, the 38.2% Fibonacci retracement level at $0.00000977 could come into focus. Close to it is also the long-term “bull boundary line”, the 200-day exponential moving average (EMA) at $0.00000961. If SHIB also exceeds this level, one can finally speak of a trend reversal. Before that, however, the current gains stand on shaky legs.

Shiba Inu price

Shibarium As Catalyst

As NewsBTC reported, Shiba Inu chief developer Shytoshi Kusama has hinted a few days ago that the long-awaited layer-2 solution Shibarium will be unveiled along with numerous other innovations at the ETHToronto conference on August 15-16. With only 32 days left until this event, the hype could undoubtedly serve as a catalyst for SHIB. At least Shiba Inu ecosystem token BONE has already benefited from the announcement, raking in high double-digit percentage gains.

Just today, Kusama fueled anticipation for Shibarium when he announced the relaunch of the official Shiba Inu website Via Twitter, Kusama teased “Enjoying the summer of Shibarium.”

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