Shiba Inu [SHIB] has been one of the top gainers over the past day. After appreciating by more than 23% in the said timeframe, the token’s market cap has managed to balloon up to $15.35 billion.
Shiba Inu’s ‘late reaction’
The broader crypto market, led by Bitcoin and Ethereum, started making rapid northward strides during the late hours of Friday. Most coins carried forward the same bullish momentum even on Saturday. However, during the aforesaid days, Shiba Inu’s price movements remained lethargic.
As the broader market has, yet again, come to a point of standstill, this meme token has started pumping. After consolidating in the $0.00002032 to $0.00002370 range for nearly a fortnight, Shiba Inu’s price managed to take the jump only on Sunday.
Time to anticipate higher highs?
Despite the record-breaking hike, Shiba Inu hasn’t been able to maintain its green streak on the charts. Currently trading at $0.00002788, SHIB’s price is at a critical point. Since the end of November, the 50 Day Moving Average [DMA] has obstructed the token’s price from breaking above. It was rejected around the said range twice – once each during mid of December and mid of January.
Additionally, it should also be noted that Shiba Inu created a triple bottom around $0.00002800 over the course of December and January. The said level, however, failed to act as a support and help the token bounce up. SHIB instead embarked on a downtrend post creating the bullish setup.
At this stage, Shiba Inu is currently hovering quite close to the same level, and interestingly, it also coincides with the 50 DMA hurdle. Earlier in October when SHIB started trading above the 50-day MA, it went on to register an astronomical growth of close to 1200%. So, only if the token manages to get past this roadblock, would it enter into a sustainable ‘higher highs’ phase.
In such a scenario, market participants can initially expect a 32% upside move over the next couple of days. Post that, the token would be tested around the 61.8% fib level and if bulls aid it, SHIB could start exchanging hands around the upper $0.000040’s range. The same would translate into a 65%+ incline from the current price range.
On the flip side, if Shiba Inu gets rejected around its current level, then it would either be rescued by its 200 DMA [blue line] or around its recent support at $0.00002031. Further, if the token isn’t able to hold back its horses from sliding, it wouldn’t take much time for it to stoop down to its early October levels.