Since facing rejection at $0.00000628, Shiba Inu [SHIB] has closed at lower lows for six consecutive days, touching a low of $0.0000056.
With the memecoin trading on a long-term descending channel, SHIB appeared to have found a short-term bottom.
Shiba Inu successfully defended $0.0000056 support and flipped $0.000006 resistance again. In fact, as of this writing, it traded at $0.00000615, after slightly rising by 5.94% on the daily charts.
Over the same period, the memecoin’s trading volume rose 18% to $86 million, indicating increased market participation. In doing so, it flipped both 9- and 21-day moving averages, reflecting strengthening upside momentum.
Shiba Inu sees renewed demand as buyers step in
Shiba Inu experienced a shift in sentiment, with selling activity slowing while buyers showed greater determination. In fact, on the 30th of March, Shiba Inu saw 257.7 billion in buy volume compared to 230.3 billion in sell volume.
As a result, the altcoin recorded a positive Buy Sell Delta of 27.4 billion, a clear sign of aggressive Spot accumulation. This marked a significant shift from the previous market setup, as sales volume dominated.
Coupled with that, Buyer to Seller Volume climbed to 23 billion compared to 11 billion. As a result, Buyer’s strength surged to 82 while Seller’s strength dropped to 17.
Historically, a surge in buyer strength has preceded strong upside momentum, leading to higher prices if sustained.
Momentum flips bullish
With demand slowly rebounding, the momentum flipped bullish, although in the short term, as evidenced by the MA Cross and the Relative Strength Index. Shiba Inu’s RSI formed a bullish crossover, rising to 52 and edging into bullish territory.
Often, such a jump in RSI indicates strengthening upside momentum with buyers slowly retaking the market. The trend’s strength was further strengthened by the memecoin’s flipping of short-term moving averages.
Therefore, if the recent demand continues, the memecoin could make further gains. The prevailing trend continuation will see SHIB flip its immediate resistance at $0.0000062 and target $0.000007, where the trend broke down.
Profit takers present a pullback risk
After SHIB flipped $0.000006, holders, especially those who had been underwater, jumped into the market and cashed out.
According to Coinglass data, the memecoin’s Spot Netflow turned positive after five consecutive days of negative flow. At press time, Spot Netflow was $412k, indicating increased exchange inflows.
Usually, higher inflows increase selling pressure, which dilutes the market demand, further strengthening the downside risk. If profit takers continue to cash out, it could derail recent gains and potentially see another slip.
Therefore, if these gains turn speculative while profit-taking rises, the memecoin will pull back to $0.0000059, with $0.0000057 as critical support.
Final Summary
- Shiba Inu surged 5.9%, successfully defending $0.0000056 and flipping $0.0000061 resistance.
- SHIB rebounded slightly as buyers stepped in to defend key levels, but profit-taking threatens to derail recent gains.
