After a significant market correction that saw its price add a zero, the popular meme token Shiba Inu (SHIB) appears to be showing signs of stabilization and a potential resurgence. Analysts are closely watching its price action for indicators that a reversal might be imminent, potentially setting the stage for SHIB to reclaim lost ground in the near future.
Glimmers of a Market Reversal
Currently consolidating near its local bottom around $0.0000098, Shiba Inu's price action suggests that selling pressure is diminishing. A notable increase in buying volume following a sharp, liquidation-driven decline indicates seller exhaustion. While volatility remains high, recent trading sessions have displayed smaller candle sizes and reduced activity, classic signals of market indecision preceding a potential breakout. Despite these hopeful signs, SHIB still trades below its major moving averages (50-, 100-, and 200-day EMAs), signifying it has yet to establish a strong short-term bullish structure.
Key Indicators for a Bullish Push
The Relative Strength Index (RSI) hovering near 39 points to SHIB approaching oversold territory, a common zone for price reversals. For a meaningful rally, SHIB needs a clean breakout above the $0.0000112-$0.0000120 resistance zone. Such a move would likely attract new momentum traders and retail investment, enabling it to shed the recently added zero. Crucially, volume confirmation over the next three days will be paramount; a surge in trading volume coupled with a green candle closing above $0.0000105 would signal accumulation at current levels and hint at a short-term rally. Furthermore, an increase in wallet activity or a rise in exchange outflows could bolster bullish sentiment, according to on-chain data.
