Shiba Inu’s price surged close to 40% but quickly surrendered most of those gains after meeting resistance near $0.0000058. Sellers pushed the meme coin down to a key support zone just above $0.0000045, where buyers now face the challenge of stabilizing the rally.
Rally hits a wall, bulls fight back
The breakout started near $0.0000041 and saw SHIB briefly spike to $0.0000058 before retreating sharply. The long upper wick on the 4-hour chart indicates quick absorption of buying pressure, leading to a pullback around 20% off the intraday high. Despite the drop, SHIB remains above the range it held throughout much of July, hinting the rally isn’t fully reversed.
The push upward coincided with a noticeable surge in South Korean retail trading, an uptick in token burns, and renewed activity from whale investors. However, the swift reversal suggests many traders booked profits instead of holding long-term positions. On the technical front, SHIB now trades near its 20- and 50-period simple moving averages at approximately $0.00000466 and $0.00000468. Maintaining these levels could help solder a stronger base for future advances.
Deeper support lies around the 100-period SMA, close to $0.00000444, with the 200-period SMA near $0.00000437 also rising. The average directional index at 31.03 confirms increased volatility has evolved into a clearer trend. Meanwhile, liquidation data flags significant use near $0.0000045, meaning the market might see fresh volatility spikes soon.
This latest price action follows a recent pattern of sharp moves followed by quick reversals seen in other assets. For instance, Ethereum demonstrated a pullback after a 31% rally, where technical indicators flipped bearish. Whether SHIB can hold its ground depends on buyers’ ability to defend this support amid uncertain market conditions.
This content is for informational purposes and does not constitute financial advice.
