Shiba Inu Eyes $0.00001000 as Buying Pressure Returns

The price of Shiba Inu has been recovering after a few weeks of silence. The token has recently broken out of a tight compression area, generating renewed purchasing interest. According to traders, it is likely that the price will hit $0.00001000 soon, which will confirm the change in the short-term sentiment.

SHIB had traded in a tight band throughout December. The pace of selling slowed at the time, indicating that sellers were losing control. The recent breakout is the first apparent shift in the price behavior during this year.

SHIB Breakout Shows Trend Shift

The technical analysis provided by Gain Muse shows that SHIB has risen over its compression zone. It usually takes this form when volatility diminishes after long-term declines. The occurrence of a breakout of compression is often an indicator that a directional movement has already started.

According to Gain Muse, SHIB has regained its short-term market structure. The price has now moved above levels that previously resisted upward moves. The trend indicates new buyer interest.

Since the breakout, SHIB has been displaying cleaner price action. More often, higher lows are being observed, implying that buyers are hedging against retreats. This trend favors the argument of a long-term recovery and not a short-term one.  

Source: X

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SHIB Momentum Returns  

The trend-strength indicators have also become supportive. The directional momentum is increasing with the Average Directional Index (ADX), which has increased sharply.

SHIB is also trading near its short-term exponential moving averages. On the lower timeframes, the value has gone past the 20 and 50 EMAs. These levels are now dynamic support areas.

Meanwhile, the long-term exponential moving averages (EMAs) are not at the current levels. The 100 and the 200-period EMAs may act as a decelerating factor to the rally if the upward momentum drops. A clear positive break would offer extra support to the bullishness.  

ADX and EMA. Source: TradingView

SHIB Selling Pressure Drops  

The Fibonacci extension sets the $0.00001000 as a prime upside target. This region coincides with areas of resistance during the previous stages of consolidation.

The recovery is also backed by the relative strength index. RSI has shifted back to neutral after it traded around the oversold point for many weeks. This indicates that the pressure to sell has dropped off, but the token has still not entered overbought regions.

A neutral RSI leaves room for further upside if demand persists. It also reduces the risk of immediate profit-taking from momentum traders.

Fib. and RSI. Source: TradingView

What Comes Next for SHIB

Meme coins have attained stable market conditions. Risk appetite is slowly coming back to high-beta crypto assets, and it appears Shiba Inu is getting the added advantage from this movement.  

However, this is yet to be confirmed. The token must maintain its price above the re-established reclines. This might trigger a new consolidation phase if these levels are not held.

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