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Shiba Inu (SHIB) Price Analysis: Support Levels and Potential Recovery

Shiba Inu’s price steadied around $0.000021 on Tuesday, showing signs of a potential recovery after testing key support on Monday. This support, between $0.000019 and $0.000021, presents an opportunity for investors to accumulate SHIB.

Key Support and Recovery Potential

On Monday, SHIB’s price dipped to $0.000019, a crucial level aligned with its 61.8% Fibonacci retracement. This zone, measured from the August 5 low of $0.000010 to the December 8 high of $0.000033, has historically acted as a reversal area. By Tuesday, SHIB had rebounded, trading above its 200-day Exponential Moving Average (EMA) at $0.000021.

A sustained hold at $0.000019, combined with a weekly close above $0.000022, could drive the price higher, targeting the next resistance at $0.000028.

Technical Indicators Reflect Mixed Signals

  • Relative Strength Index (RSI): At 44, the RSI on the daily chart signals mild bearish momentum, as it remains below the neutral 50 level.
  • MACD Indicator: The Moving Average Convergence Divergence (MACD) flattens near zero, reflecting indecision among traders.

On-Chain Data Supports a Bullish Case

Blockchain data reveals that approximately 17,160 addresses purchased 3.22 trillion SHIB tokens at an average price of $0.000021, suggesting strong investor interest at this level. If the price revisits this zone, it could attract further accumulation, reinforcing the support.

The In/Out of the Money Map (IOMAP) confirms that $0.000019–$0.000021 is a critical reversal zone, aligning with technical findings.

Market Sentiment Points to Optimism

Data from Coinglass highlights a positive open interest-weighted funding rate of 0.0103%. This indicates more traders are betting on price increases than declines, reflecting bullish sentiment.

Risks to the Bullish Outlook

If SHIB fails to hold above $0.000019 and closes below this level, the bullish narrative weakens. Such a move would establish a lower low on the daily chart and could lead to a further 15% decline, testing the November 3 low of $0.000016.

Conclusion

Shiba Inu’s price action remains at a critical juncture. While technical and on-chain indicators suggest a potential recovery, holding above $0.000019 is crucial. Investors should monitor these levels closely to gauge the market’s next move.

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