Shiba Inu (SHIB) continues to hold its key support area, prompting renewed optimism among market watchers. An analyst now projects a strong rebound that could drive the token back toward a crucial daily exponential moving average (EMA), signaling potential recovery after recent consolidation.
Shiba Inu Maintains Key Support Amid Market Uncertainty
Shiba Inu has been fluctuating between $0.000010 and $0.0000099, reflecting the broader market’s indecision. This mirrors the trend seen in Bitcoin and other major altcoins. Despite the stagnant price action, the asset maintains a vital support level, which analysts view as the foundation for a possible upward move.
According to market analyst SwallowAcademy, SHIB’s ability to hold this critical demand zone indicates potential strength. The analyst noted that the recent dip formed a visible gap that prices could soon fill. A chart shared by SwallowAcademy highlighted that SHIB dropped below the former support range between $0.00001145 and $0.00001264. This green-marked zone had provided consistent support throughout the token’s multi-month consolidation.
Shiba Inu and the 200-day EMA, Source: TradingView
Now, with Shiba Inu trading near $0.000010, analysts believe it could bounce back toward that area, which has become resistance. SwallowAcademy previously identified the 200-day EMA as a persistent resistance barrier for SHIB. Since May, this indicator has rejected upward momentum on multiple occasions, halting rallies before they could extend.
200-Day EMA Holds the Key to Next Price Direction
Historical price data shows that the 200-day EMA has repeatedly capped bullish runs. Shiba Inu faced rejection near this level during price peaks at $0.00001765 in May, $0.00001597 in July, and $0.00001484 in September. Each of these rejections occurred close to the EMA, reinforcing its role as a decisive technical level.
SwallowAcademy emphasized that a retest of this resistance would not only fill previous market gaps but also define SHIB’s next trajectory. If the token manages to break above the EMA, it could trigger a significant bullish shift. However, another rejection might extend the current consolidation phase.
At the time of writing, the 200-day EMA trends around $0.00001299. A move from the current price of $0.000010 toward this level represents an estimated 30% price increase.
Adding to the optimistic outlook, ForexDreamVantage echoed similar sentiments, suggesting that Shiba Inu “is still alive.” The analyst argued that holding the present support could open the door for a rebound toward the “trend reversal zone” near $0.00001765. Reclaiming this area would likely transform market sentiment from bearish to bullish, potentially setting the stage for a broader rally.
