Shiba Inu Bounces Off Make-or-Break Support—Here’s the Next Big Move
Shiba Inu defies gravity—again. After scraping critical support, the meme coin’s latest rebound has traders buzzing. Could this be the launchpad for another parabolic run? Or just another dead-cat bounce in crypto’s favorite casino?
The Line in the Sand
SHIB’s recent dip flirted with a do-or-die price floor. Now, the rebound’s velocity suggests either accumulation… or yet another bull trap for overleveraged degens.
Patterns Emerge
Watch for a confirmed breakout above nearest resistance. Fail here, and we’re back to testing lows. Clear it? The path opens toward previous highs—assuming the ‘greater fool’ theory holds.
The Crypto Calculus
Volume tells the real story. Thin pumps get faded fast in this market. Sustained buying? That’s when the ‘when Lambo?’ crowd starts mortgaging their kidneys.
One thing’s certain: in a world where ‘fundamentals’ means Elon’s latest tweet, technicals are all we’ve got. Trade accordingly—and maybe keep some dry powder for when the Fed flips the liquidity switch back on.
Exchange Reserves Still Hover Near Yearly Lows
Shiba Inu’s exchange reserves, a proxy for sell-side pressure, are still stuck NEAR their yearly bottom.
The reserves hit a 12-month low of 895.9 billion SHIB on June 22. Two days ago, the figure was around 995 billion, and as of August 5, it has increased marginally to 1.04 trillion.
That is still significantly below the yearly average, suggesting only mild profit-taking and no signs of panic selling. The lack of significant exchange reserves often means that either the exchange inflows are low or the big names are offsetting the selling pressure. Both of these moves are bullish in nature for the shiba inu price.
: Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily crypto Newsletter here.
Money Flow Diverges From Price As Bear Power Wanes
Chaikin Money Flow (CMF), a metric that tracks buying and selling pressure based on volume and price movement, shows a bullish divergence. On July 31, CMF peaked before pulling back briefly. By August 3, it printed a new higher peak, even though the SHIB price made a lower low during the same period.
This signals stronger buying interest, despite short-term price weakness; a classic case of hidden accumulation.
Shiba Inu Price Holds Ascending Support, But Resistance Levels Stack Up
SHIB recently bounced off the lower trendline of an ascending triangle, one of the most critical structures on the chart. That upward-sloping base is still intact, indicating the broader structure remains bullish. However, the token faces stiff resistance at multiple levels.
The price is currently stuck below 0.0001258, with nearby resistances at 0.0001318 and 0.0001368. A move past these could open the door to the key breakout level at 0.0001599. That’s the level to watch; any sustained move above it WOULD confirm a higher high, a key trend reversal structure SHIB hasn’t formed in a while.
While SHIB is showing signs of resilience, any breakdown below the ascending triangle’s lower trendline, currently hovering just above 0.0001160, would invalidate the bullish structure.
