Shiba Inu (SHIB) is showing strong bullish momentum as it attempts to break out of its multi-week downtrend, buoyed by improving macroeconomic conditions and renewed interest in memecoins. At the time of writing, SHIB is trading at approximately $0.00001006, recovering from recent lows and pushing toward a critical resistance zone near $0.00001050.
The price rebound began when SHIB tested the lower boundary of a descending channel around $0.00000930. That level held as support, prompting a recovery that saw the token break past the $0.00000998 resistance line. This breakout has now flipped that level into short-term support, establishing a more optimistic outlook for the near future.
Technical indicators support the bullish case. The Relative Strength Index (RSI) is hovering near 60, indicating moderate bullish momentum without signaling overbought conditions. This leaves room for further upward movement before the price enters a potentially overheated zone. Moreover, the Exponential Moving Averages (EMAs) on the 9, 21, and 55 periods have aligned in a bullish formation, confirming the early stages of a trend reversal.
If SHIB can close a 4-hour candle above the $0.00001050 level and maintain that strength, it would confirm a breakout from the descending channel that has contained price action for several weeks. Such a breakout would likely open up further upside potential, with the next key price targets at $0.00001150 and $0.00001298 — gains of roughly 15% and 30%, respectively, from current levels.
This price action is not occurring in isolation. The broader cryptocurrency market has experienced a resurgence, largely driven by macroeconomic optimism. A potential resolution to the U.S. government shutdown and a return of nearly $1 trillion in liquidity to the financial system have reignited investor appetite for risk. This has not only lifted Bitcoin and major altcoins but also spilled over into the memecoin sector, with Shiba Inu and Dogecoin among the top performers.
The surge in liquidity is particularly favorable for speculative assets like SHIB, which tend to thrive during periods of heightened risk-on sentiment. Investors are increasingly looking to capitalize on short-term volatility, and SHIB’s low entry price and strong community backing make it an attractive choice for retail participants.
It’s worth noting that while technical indicators are currently supportive of continued gains, market sentiment can shift rapidly. A failure to hold above the $0.00001050 resistance could lead to a retest of the $0.00000998 support line. If that level fails, a deeper correction toward the $0.00000930 region could be on the table.
For traders and investors, it’s essential to keep an eye on volume trends. A breakout accompanied by rising trading volume would add further confirmation to the bullish move. Conversely, a weak breakout on low volume could be a false signal, eventually leading to a pullback.
On-chain data also suggests growing interest in SHIB. Wallet activity has picked up, and SHIB’s burn rate has increased in recent days, reducing the token’s circulating supply and potentially adding to bullish pressure. Community-driven burning initiatives continue to be an integral part of Shiba Inu’s strategy to boost tokenomics and long-term value.
Looking ahead, sustained bullishness in the broader crypto market will be crucial for SHIB’s continued rally. As Bitcoin and Ethereum maintain their upward momentum, altcoins like SHIB tend to follow suit. Additionally, positive developments in the Shiba Inu ecosystem — such as updates to Shibarium, the project’s Layer 2 solution — may further enhance investor confidence.
In conclusion, Shiba Inu is currently in a pivotal position, with a confirmed breakout above $0.00001050 potentially unlocking a new phase of upward movement. While near-term volatility remains a risk, current technical and macroeconomic conditions support a cautiously optimistic outlook for SHIB in the coming days. Traders should remain attentive to price action and volume signals, while longer-term holders may see this as a sign of strengthening fundamentals in the memecoin sector.