Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Shiba Inu was looking to flip critical resistance level using bullish trendline as support.
- On-chain metrics highlighted rising bullish sentiment.
Memecoins have benefitted from the increased volatility of the markets in recent times. Pepe and BabyDoge were the second and third trending tokens on Coinmarketcap in the past 24 hours.
Read Shiba Inu’s [SHIB] Price Prediction 2023-24
However, one of the most popular memecoins, Shiba Inu [SHIB] hasn’t seen much bullish action with a key price level standing in the way of significant gains. Can bulls quickly flip this level and join the memecoin ride?
Key support for bulls now stands as a major hurdle
Source: SHIB/USDT on Trading View
A look at Shiba Inu’s price chart on the higher timeframes showed that the $0.00000807 resistance level was a key support level for bulls in January. The level acted as a price base for a remarkable rally to a year-high of $0.0000157.
However, SHIB has struggled under a bearish structure since then, due to traders moving to more exciting memecoins. This led SHIB to a new low of $0.0000055 on 10 June. While bulls rebounded decently off the low, a familiar price level has become a hindering factor.
The $0.00000807 level has twice rebuffed the bullish advance. However, recent price movements suggest a break in the level might be imminent. A look at the 12-hour timeframe highlighted the formation of a bullish trendline which has acted as support for the upward move.
With the RSI registering an upward tick above the median-50 and the CMF maintaining its positive capital inflow, bulls could register a series of bullish candles to take it above the $0.00000807 resistance.
Aggressive SHIB bulls can look for an entry on a break above the resistance level, especially if Bitcoin [BTC] stays above $30k. Short-term profit levels will be at the $0.00000980 level, as this could present another notable resistance.
How much are 1, 10, or 100 SHIB worth today?
Spike in exchange outflows could spur buyers
Source: Santiment
On-chain metrics from Santiment highlighted key movements that could aid a bullish rally. First, the 30d MVRV ratio stood at 0.774%. It showed that monthly holders were just starting to flip their losses to profits. This could spur a massive buying wave, as short-term holders look to maximize gains.
In addition, the exchange outflows recorded a huge spike on 19 July. This hinted at a short-term accumulation trend with Shiba Inu buyers looking to lock profits on a break of the key resistance level.