Shiba Inu has shown a renewed attempt to recover from its lows recorded in August, yet the price trajectory lacks signals of a robust upward trend. In recent trading, SHIB saw a near 3% increase within 24 hours, positioned around the $0.00000535 mark. It managed to climb above moving averages clustered between $0.00000500 and $0.00000507.
Key Thresholds in Technical Outlook
The region around these moving averages serves as the primary support zone in the short term. The ascending trend line, emerging from the August lows, fortifies the buyers’ position. However, SHIB struggles to sustain its presence above the $0.00000540 range.
During August, despite a brief rise towards $0.00000620, strong seller pressure propelled SHIB downward. To retest this peak, SHIB needs to surpass a long-term critical moving average located around $0.00000568.
Overcoming the $0.00000568 level could significantly solidify the recovering technical structure. Conversely, losing the $0.00000500 support might weaken the current upward configuration.
Do Momentum Insights Point to Optimism?
The momentum indicators present a murky picture. The daily Relative Strength Index rests at 57.6, indicating that the market stays above the neutral threshold of 50 with buyers having a slight edge. Yet, its distance from signaling strong upward momentum suggests the upward movement remains sluggish.
This scenario implies a gradual recovery rather than a decisive breakout. For price advancement to continue, maintaining support zones and showing stability at higher resistance levels are crucial strategies for SHIB.
Spot and Futures Markets Sending Mixed Signals?
The spot market data reflects cautious optimism. In the last eight hours, SHIB’s net spot flow was negative $271,000, and over four hours, it was negative $210,000. Persistent negative net flows suggest tokens being withdrawn from exchanges, potentially reducing immediate selling pressure.
Shiba Inu, a memecoin based on the Ethereum network, ranks among the largest crypto assets by market cap. However, these spot flows do not pose a significant impact compared to its $3.16 billion market valuation.
While negative spot flows potentially reduce selling pressures, their scale remains limited against SHIB’s total market cap.
In the futures market, the uneven landscape persists. Open interest varies significantly across exchanges, while liquidations in the past 24 hours stayed around $112,000. This scenario suggests an absence of a clear and strong directional consensus among market participants.
Holding above the $0.00000500 support can sustain the recovery pattern. If SHIB falls below this level, it risks a downturn towards the $0.00000480 to $0.00000440 price range, raising concerns for bullish traders.
