Shiba Inu (SHIB) currently ranks 13th on CoinMarketCap, just behind Dogecoin at 12th place. Shiba Inu has a market capitalization of 19.67 billion USD. It has been in a downtrend since late October when the price hit an ATH of $ 0.000088.

At the time of writing, the SHIB was testing an important area and came back on support. Has the coin meme really taken control of the situation? If bullish, how far can it go from here?

Source: TradingView

In general, strong downtrends are followed by a long period of accumulation before a strong return to highs. SHIB has not had this accumulation period in months, although it has been trading sideways just above the USD 0.000033 support for the past few weeks.

This suggests that the SHIB is more likely to see an upswing, possibly up to $ 0.00004 and in the $ 0.000046 area (red box). Retesting the $ 0.000033 support could be a buying opportunity.

The next candle has a long upper wick that shows that sellers have temporarily exhausted buyers. This can lead to a retest of the support. It should also be noted that the SMA 21 (orange) has acted as resistance in the past few weeks, but the price has climbed above it and could turn into support. The 55 SMA (green) offers resistance for the price.

Source: TradingView

Some evidence of SHIB strength was seen on the RSI. 64.98 on the RSI is the level the bulls need to beat. If it can go above this level and retest it could help the SHIB rebound from $ 0.0000332 to $ 0.000088. In the event of a rejection, the seller remains in control of the situation.

The RSI has risen above the neutral level of 50, another important level that the SHIB broke once in the past two months. The Awesome Oscillator is moving towards the zero line and a bullish crossover could soon form.

In summary, momentum has developed and key areas on the chart have been tested to find buyers. However, the trading volume is nowhere near the level of the previous parabolic run. The conservative targets for this rebound, when it bounces off the $ 0.000033 mark, are at $ 0.00004 and the liquidity zone of $ 0.00046 to $ 0.000048.

Here you can see the SHIB prices.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions

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