Shiba Inu bulls need to cross this hurdle for another rally
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.
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
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
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.