Shiba Inu (SHIB) Price Holds 40% Gains After Rollercoaster Week

Shiba Inu Price Analysis

Shiba Inu price experienced a volatile week in the cryptocurrency market, as bearish internal catalysts emerged to counteract the dominant bullish momentum.

Shiba Inu Price Retraces 5% as Profit-Taking Begins

Shiba Inu price has been on an upward trajectory, since the US CPI data came in dovish on July 5. One of the primary internal catalysts for Shiba Inu’s positive performance over the past two weeks is the anticipation surrounding its new token burn mechanism.

This mechanism is expected to reduce the overall supply of SHIB significantly, potentially leading to a price increase in the longer term. Although the exact launch date of this mechanism remains unconfirmed, the market sentiment has been positively impacted by the prospects of a decreased supply​.

A combination of this positive speculation surround SHIB’s new token burn mechanism and the positive shift in macroeconomic dynamics have both led driven Shiba Inu price into outperforming the market.

Shiba Inu price has experienced a 9% retracement that ensued between July 17 and July 20, as some traders begin to take early profits. However, despite the sell-off, the chart above shows how SHIB price consolidated around the $0.000018 level at the time of writing on July 20,  up 44.39% from the record lows recorded on July 5.

Another vital bullish factor is that, the Shiba Inu development team has been actively working on enhancing the ecosystem. This includes the development of Shibarium, a layer-2 solution aimed at improving transaction speeds and reducing costs on the Ethereum network.

In summary, while Shiba Inu has faced a challenging week with notable price volatility, the ongoing developments within its ecosystem, particularly the anticipated token burn mechanism, offer a glimpse of potential bullish movements in the future. Investors are closely watching these internal catalysts, which could play a significant role in SHIB’s trajectory in the coming months.

SHIB Price Forecast: Bulls Eyeing $0.000020

Shiba Inu price has demonstrated notable resilience within the daily timeframe on July 20. As of the latest data, SHIB has climbed to $0.0000183, marking a 44.39% increase over a span of 15 days, followed by a slight correction.

Vital technical indicators suggest a cautious yet optimistic outlook for SHIB.

The Parabolic SAR (Stop and Reverse) indicator currently signals an upward trend, with the dots positioned below the price candles, suggesting continued bullish momentum. The current support level is identified at $0.000015644, which has been tested successfully in recent sessions, providing a solid foundation for potential upward movements.

The Detrended Price Oscillator (DPO), designed to eliminate long-term trends, stands at 0.00, indicating a neutral momentum. This neutrality suggests that while there is no strong indication of an overbought or oversold condition, the recent price stability might pave the way for a breakout if positive market sentiment persists.

As SHIB continues to consolidate, the primary resistance level to watch is $0.000020. A break above this level could trigger further bullish activity, potentially leading to new highs.

Conversely, the immediate support level remains at $0.000015644. If the price were to breach this support, it could signal a short-term bearish reversal, bringing the price down to test lower supports.