The market was taken by surprise following Shiba Inu's dramatic price increase which sent it to $0.00003059. Though there are still concerns about whether this rally can continue or if it will eventually cool down, this face-melting pump has reignited interest in the meme coin.
Examining the price chart, SHIB has confirmed a bullish continuation from the ascending triangle pattern it previously formed by breaking past the crucial resistance of $0.000027. Volume significantly increased in tandem with the breakout, indicating heightened investor interest.
SHIB/USDT Chart by TradingView
Additionally, this move strengthens SHIB's upward trend by positioning it well above the crucial 50, 100 and 200 EMA levels. However, SHIB has entered overbought territory with the RSI at 73, suggesting that the rally may be short-term overextended. In the past, when traders took profits, these circumstances frequently came before a period of consolidation or correction.
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In the event that this occurs, it is imperative to monitor the support levels at $0.000027 and $0.00002445 for a possible rebound. The potential for sustained interest in SHIB is further supported by on-chain data. Most investors are still in the money with a sizable concentration of holders holding SHIB at an average entry price of about $0.00025.
Given that most traders are currently making money and are unlikely to panic sell unless there is a significant decline, this suggests strong confidence in the financial instrument. In order to keep up its upward momentum, SHIB will need to overcome resistance at $0.000032. A break above this might allow SHIB to aim for $0.000035 or above. Though the rally is moving quickly and the RSI is overbought, there is a good chance of a short-term pullback unless volume keeps rising.
Ultimately, Shiba Inu's pump has set it up for future gains but prudence is advised. The crucial question is whether SHIB can sustain its momentum and generate higher-level support in order to prevent a significant correction. As the market gains new vigor, the meme coin continues to be a favorite among traders.
