- Despite Bitcoin hitting new all-time highs, Shiba Inu price has struggled to break out of its bearish momentum since mid-May.
- For SHIB to approach $1, it would need a perfect storm of hype, whale activity, massive token burns, and bullish developments
- SHIB must break above this level to trigger bullish momentum.
Shiba Inu price has been stuck in a downtrend since mid-May, even as the Bitcoin price reached a new all-time high during the same period.
As the crypto market gears up for a potential altcoin season, the big question on everyone’s mind is: Can SHIB moon to $1 in the next 120 days?
Shiba Inu Price Struggling to Break Bearish Momentum
SHIB price may see renewed momentum as the Bitcoin price surges above the $106K mark, aiming to rally back to its recent all-time high.
The chart below shows that Shiba Inu trades at $0.00001216, a 1.42% surge in the last day, and is currently stuck below the bearish trend line as of mid-June, according to GeckoTerminal.com data.
The 200-day simple moving average (SMA) at $0.00001687 presents a significant barrier above. The 50-day Simple Moving Average (SMA) at $0.00001372 is the next resistance level that Shiba Inu price needs to break for any bullish momentum to occur.
Additionally, the Moving Average Convergence Divergence (MACD) sits in bearish territory. The blue MACD line tried but failed to cross the orange signal line on June 10, missing a golden chance for a momentum shift.
The Relative Strength Index (RSI) is neutral at 40.35, neither oversold (below 30) nor overbought (above 70), leaving traders without a clear signal.
A bullish divergence on the RSI could be the green light the SHIB army needs to jump back in.
How SHIB Price Could Reach $1 Amid Activity
Several factors, such as hype, can potentially drive the Shiba Inu price to $1. As with many other meme coins, community hype is a crucial factor that helps propel their value. A strong revival of the SHIB army on social media can ignite a massive rally to the top.
Positive market sentiment is also a substantial contributing factor. With the right market conditions, the token might rally. The current Iran-Israel conflict needs to end as soon as possible for the markets to regain the required confidence.
Additionally, project developments and news announcements also play a significant role in a token’s performance. The recent launch of the SHIB Alpha Layer, which aims to offer better scalability of the Shibarium ecosystem, could trigger a price surge.
The token also needs a massive surge in its token burn. Token burns cause scarcity, which in turn pushes the price of a coin up.
SHIB also needs to witness an increase in large transactions. If whales can pour money back into SHIB, the token could see renewed interest in the crypto space.
Will SHIB Hit $1 Soon?
The Shiba Inu price needs to close above the critical $0.00001372 resistance level, which could act as a bullish signal, potentially attracting more buyers.
The current zone serves as a suitable entry point for the long term, allowing the asset to accumulate. However, traders should exercise caution and wait for a clearer signal before making a decision.
For now, pushing to $1 for SHIB remains a tough call unless significant developments occur in Shiba Inu.
