Shiba Inu Price Shows Resilience Amid Market Challenges
Despite facing tough times, Shiba Inu (SHIB) has demonstrated impressive strength in the midst of a market downturn.
Since July 3, SHIB has experienced a drop of more than 26%, reaching a low point near $0.0000128 on July 5. However, the token quickly bounced back, indicating strong buying interest at lower price levels.
Bullish Signals for Shiba Inu Despite Obstacles
In the past week, SHIB has witnessed a striking 466% increase in its weekly burn rate. The Shibburn X account reported a burning of over 364 million SHIB tokens within the last seven days.
This surge in burn rate suggests that the community is actively working to create scarcity and enhance long-term value. It also indicates a deliberate effort to manage supply, potentially leading to a more balanced supply-demand scenario over time.
This strategic move could prove beneficial as the wider market starts to recover, setting SHIB up for potential price appreciation.
Furthermore, cryptocurrency exchange BitMEX recently introduced MEMEMEXTUSDT, a Basket Index perpetual swap contract covering top meme coins. This investment option allows traders to access a diversified selection of leading meme coins through a single instrument, with SHIB included in the token basket.
SHIB Price Challenges Channel Support
On July 5, Shiba Inu’s price surged by more than 16%, defying the bearish trend in the broader market. The meme coin continued its upward trajectory on July 6 as bulls attempted to turn the $0.000015 resistance level into support.
However, the fact that SHIB is currently trading within a descending channel pattern adds complexity to the situation. Presently, SHIB is hovering near the support line of the channel, indicating a possible bounce from this level.
A successful hold of this support could trigger a recovery rally, pushing the price towards the 0.00001579 resistance level, which corresponds to the 61.8% Fibonacci retracement. Further upward movement may target the 20-day EMA (red wave) resistance at 0.00001787, close to the 78.6% retracement level.
On the flip side, if selling pressure persists, SHIB might test the support level around 0.00001334, aligning with the 38.2% Fibonacci retracement. A breach below this level could lead to a test of the stronger support at 0.00001190, corresponding to the 23.6% retracement.
Currently, the token is trading below its 20, 50, 100, and 200-day EMAs, indicating a bearish trend. The RSI stands at 29.81, signaling that SHIB is oversold and may be due for a potential rebound.
Shiba Inu’s price movement is at a critical point, with the support line of the descending parallel channel being a key indicator to monitor for a potential reversal.
