The Shiba Inu (SHIB) price has experienced a slight recovery in the last day and is currently trading at $0. 00001743, which is a 2. 50% jump. This surge has happened when there has been heightened activity in the market and the interest of investors with the 24 hour trading volume rallying to $258,667,781, an increase of 18. 77%.In the last day, SHIB has been on the rise and its price fluctuated from $0.000017 to $0.0000176 and now is stable.
Source: CoinmarketCap
New Marketplace and ETF Developments
The Shiba Inu team has recently disclosed its plans to establish the ‘SHIB marketplace,’ a move that seeks to transform Web3 commerce. This will be built on Ethereum and specifically with the use of the Shibarium Layer 2 solution, BONE will be used for transactions and the Shiba Inu DAO for control. The marketplace aims at having low transaction costs, with the help of security of Shibarium and Ethereum networks.
Even though the community has been eagerly waiting for this update, the price of SHIB has to show the effects of this change.
Also, there is increasing talk of a SHIB ETF, which might help attract institutional investors and thus create more demand. The Shiba Inu team has said that there is a possibility for a SHIB ETF to come to existence citing the de-centralized nature of Shiba Inu as an advantage to institutions.
Technical Analysis and Market Sentiment
As of the time of this writing, SHIB’s market structure remains bearish on higher timeframe charts as the price is still below both the 50-day and 200-day SMAs. The 200-day SMA has been a major resistance level and the recent attempts to move above it have failed.
Technical indicators like the Relative Strength Index (RSI) and Chaikin Money Flow (CMF) show reduced buying pressure, which may deter buyers further.
Nevertheless, a strong price close above the 200-day SMA may indicate a change in the trend to the upside. In the derivatives market, the Open Interest (OI) rates have come down by 5% in the past 24 hours which indicates the bearish trend.
Correlation with Bitcoin and Future Projections
Shiba Inu’s positive correlation with Bitcoin (BTC) can also help the token bounce back. In the past, SHIB has not been closely tied to BTC, but the correlation has become positive recently. This makes it easier to hypothesize that any positive correlation with BTC means that SHIB will be positively affected by broader market rebounds involving BTC.
Investors’ behavior also indicates some possibility of recovery. The ratio of active addresses in profit remains low, which suggests that there is no major selling pressure from investors.
Usually, when more than a quarter of addresses are profitable, the probability of a sale rises. However, the current participation rate of SHIB is less than 13.5%, which indicates that investors are holding rather than selling.
Key Resistance and Support Levels
After a latest surge above the upper border of a falling wedge pattern, the subsequent major resistance level for SHIB is $0. 00003297. A move past this level could pave way for further upward movement towards $0. 00004551. On the flip side, the immediate support levels are at $0. 00001700, the lower boundary of the wedge prior to the breakout.
SHIB/USD price chart (source: TradingView)
The Relative Strength Index (RSI) for SHIB is at 49. 16, showing an upward trend but still within the subpar range that is less than the midpoint of 50. This indicates that there is still some room for price rise before it moves into the over-bought zone. The Money Flow Index is at 41. 94, which signifies that SHIB is not facing substantial buying or selling pressure, reflecting the conservative approach of traders.
The price fluctuations of Shiba Inu and the progress within its ecosystem indicate that there is still room for improvement. The arrival of the SHIB marketplace, the potential for a SHIB ETF, and the improving market conditions may boost the investors’ interest, and thus, the price performance may improve soon.
