Shiba Inu Price Tests Channel Support Amid Bearish Markets Read CoinChapter.com on Google News

NOIDA (CoinChapter.com)—Despite significant challenges, Shiba Inu (SHIB) displayed notable resilience in the midst of a broader market crash.

SHIB’s price declined over 26% since July 3, dropping to a daily low near $0.0000128 on July 5 before recovering, suggesting a strong buying sentiment near the lower price levels.

Shiba Inu Bullish Cues Amidst Challenges

Over the past week, SHIB has seen a remarkable 466% increase in its weekly burn rate. According to the Shibburn X account, the mechanism was responsible for burning over 364 million SHIB tokens in the last seven days.

Shiba Inu team loves to talk about its burns.

The increase in the weekly burn rate hints the community is likely driving scarcity and long-term value. Additionally, the burn activity reflects a strategic effort to manage supply, which could lead to a more favorable supply-demand balance over time.

This is particularly relevant as the broader market recovers, positioning SHIB for potential price appreciation.

SHIB fans see BitMEX fund as a step towards SHIB ETF.

Moreover, crypto exchange BitMEX introduced MEMEMEXTUSDT, a Basket Index perpetual swap contract for top meme coins. The investment vehicle allows traders to access a diversified portfolio of leading memecoins through a single instrument, with SHIB being a part of the basket of tokens.

SHIB Price Testing Channel Support

Shiba Inu’s price rose by over 16% on July 5, bucking the wider market bearish trend. The memecoin continued the uptrend on July 6 as bulls tried to flip the $0.000015 resistance into support.

However, SHIB price moving inside a descending channel pattern complicates matters. Currently, SHIB is hovering near the channel’s support line, suggesting a potential rebound from this level.

If SHIB can hold this support, a recovery rally could see the price rise to the 0.00001579 resistance level, which corresponds to the 61.8% Fibonacci retracement. Further upward momentum could target the 20-day EMA (red wave) resistance at 0.00001787, near the 78.6% retracement.

SHIBUSD daily price chart with RSI. Source: Tradingview.com

Conversely, if selling pressure persists, SHIB could drop to the support level around 0.00001334, aligning with the 38.2% Fibonacci retracement. A break below this level might see the price test the stronger support at 0.00001190, corresponding to the 23.6% retracement.

The token is trading below its 20, 50, 100, and 200-day EMAs, indicating a bearish trend. The RSI is currently at 29.81, suggesting SHIB is in oversold territory and may see a potential rebound.

Shiba Inu’s price action is at a critical juncture and the descending parallel channel’s support line is a key factor to watch for a potential reversal.

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