Shiba Inu (SHIB) Eyes $0.00001 Resistance Amidst Volatile Recovery

Shiba Inu’s price rebounded sharply this week, jumping over 3% as the broader crypto market turned bullish again. After hitting recent lows near $0.0000088, SHIB now trades around $0.000009200 as it tries to reclaim the psychologically key $0.00001 level. The meme coin has followed an uneven recovery pattern so far in 2024.

Shiba Inu’s gains this year have proven choppy and erratic. After reaching a weekly and monthly low around $0.0000088, this week’s sudden upswing offers a glimmer of hope for investors seeking a trend reversal. SHIB appears poised to retest resistance at $0.00001, a level not reached since last spring.

The coin’s daily Relative Strength Index (RSI) indicator now stands at 48, up markedly from 43 earlier this week. This shift hints that traders have resumed accumulating SHIB on dips, contributing to its price bounces. Still, SHIB remains below its 50-day moving average, signaling lingering bearishness.

Can Shiba Inu hit $0.00001?

Recently, developers have focused intensely on boosting Shiba Inu’s real-world utility through Shibarium. Transaction figures and block production metrics for Shibarium have repeatedly hit new highs. Yet this activity has struggled to translate into sustainable, long-term SHIB price rises.

One change that could finally enable Shiba Inu to convert Shibarium adoption into lasting price appreciation would be integrating token burning capabilities. Removing a portion of tokens from circulation with each transaction would constrain SHIB’s gargantuan supply. When paired with renewed trading volumes, reducing token inventory could strengthen bids and let SHIB hold its gains.

For now, Shiba Inu appears set to retest its ceiling, just below $0.00001. A convincing move above there would signal a definitive change in trend, according to analysts. It would also set the stage to reclaim the meme coin’s all-time high above $0.000088, set in the heady days of 2021.

While uncertainties abound, this week’s sudden resurgence offers SHIB bulls reasons for optimism once more. If developer efforts succeed in capturing Shibarium’s growth to enrich the Shiba Inu ecosystem, substantial price increases could await in 2024 and beyond.