Shiba Inu (SHIB) Saved? Fundamental Support Formed

Shiba Inu may be settling in after weeks of upheaval. After a steep decline that erased most of its short-term gains, the meme token now seems to have formed a solid fundamental support zone, which could pave the way for a comeback.

Shiba Inu’s crucial level

SHIB, which is currently trading at about $0.0000101, is at a crucial technical level that has historically functioned as both a support and a resistance zone. The asset has tested this area several times in the last few sessions, and each time, there has been buying interest, indicating that the market might be getting ready for a recovery.

In addition, following the panic-driven decline in early October, the price action has started to level off. Declining trading volumes are a common indication of consolidation prior to a possible move. The Relative Strength Index (RSI), on the other hand, is currently trading close to 38, suggesting that SHIB is in slightly oversold territory, a technical state that frequently precedes brief recoveries.

SHIB needs more

SHIB has made three touches of its ascending trendline support, creating a discernible base from a structural standpoint. In the past, notable upward reversals have been initiated by comparable multitouch levels. SHIB may regain the $0.000011-$0.000012 range if this support holds, with a more aggressive target close to $0.000013, where the 200-day moving average (black line) is currently located.

However, prudence is still necessary. Since the moving averages, especially the 50-day and 100-day (blue and orange lines), are still sloping downward, the overall trend is still bearish for the time being. SHIB must close firmly above these levels, indicating renewed market strength, before bulls can fully retake control.

But for holders, this recent stabilization gives them hope. SHIB may at last be laying the groundwork for a longer-term recovery, now that the support has been thoroughly tested and selling pressure is lessening. A quick reversal might ensue if momentum continues to build, transforming this support zone into the starting point for SHIB’s subsequent rally.