After experiencing an acute bearish trend throughout 2022, Shiba Inu's price has again ignited a notable upswing in 2023. SHIB, the second-largest meme coin, has shown a significant rise of over 20% from its recent lows, garnering investors’ attention again. Let's see if this is a sign of a new bull market for Shiba Inu in 2023.
Is SHIB All Set For A New Bullish Rally?
SHIB pumped over 20% to trade at $0.00001078 as of writing. The price of the meme coin had a retest at the critical descending trendline support earlier this month. It further rebounded notably, showing that that trend was ready to change course northwards.
SHIB began 2023 with a splendid rally, pumping over 96% and hitting a new yearly high of $0.00001576 by early February. Although there has been a blast of a 20% hike from its bottom, the crypto still has to prove itself before investors can fully confirm the initiation of a new bull market. A detailed technical analysis would help to identify the factors that would play a significant role in SHIB’s uptrend.
Evaluating Shiba Inu Price Technical Outlook – Daily Chart
Boasting a market cap of $6,231,128,460, SHIB is trading with a 24-hour trading volume of $287,161,149. There has been a significant increase of over 30% in its trading volume, spiking to $321 million. This indicates increased accumulation by investors, who are bullish about SHIB's rally in the coming days.
According to the chart below, the 100-day Exponential Moving Average (EMA), marked in blue, currently caps price movement under $0.00001126. A breach above this key moving average is crucial to support the breakout from the falling trendline.
SHIB/USD daily chart
Regardless of the immediate resistance level, key momentum indicators like the Moving Average Convergence Divergence (MACD) shows a persistent bullish front for the token. Right after SHIB was down, followed by the rest of the market and the collapse of Silicon Valley Bank, the MACD showed a buy signal in the daily time frame chart. As long as the MACD line in blue holds above the signal in red, investors are likely to hold their long positions in SHIB. The momentum indicator should generally move toward the mean line at 0.00 and the positive region above it to further fuel the confidence in its uptrend.
However, considering the key resistance at the 200-day EMA, in purple, at $0.000012, followed by the congestion areas at $0.000014 and $0.000018, respectively, Shiba Inu would not have a smooth recovery journey as expected in the coming days.
Shiba Inu Price Eyes Another 34% Move – 4-Hour Chart
SHIB/USD four-hour chart
On the four-hour chart, the MACD maintains the buy signal, but this time, holding above the mean line. The bounce back of this week and the Federal Reserve's decision on a potential interest rate hike on March 22 have buyers desperate to hold onto their gains. Here, SHIB's price is above the 100-day EMA, holding at $0.00001110, unlike on the daily chart where the 100-day EMA is the immediate resistance. A daily closing above $0.00001110 could indicate that support is still in place and that moving upward presents no further crisis.
200-day EMA resistance at $0.00001148 is the second most significant factor of the four-hour chart. A flipping of SHIB at this level into short-term support could garner the attention of undecided retail traders on the sidelines. A failure to pass this hurdle could negatively affect SHIB’s bullish rally ahead, as the bears will utilize the opportunity to bring down the price below $0.00001110 while targeting a retest of $0.00001.
However, the uptrend is close because the meme coin still has a hidden card, which, if played well, could launch SHIB 34% north of the 200-day EMA to highs above $0.000015. Shiba Inu price would need to push out of the falling wedge pattern, as shown on the four-hour chart for such a breakout.
Shiba Inu’s Shibarium Beta Release Clouded In Code Drama
The rising positive sentiment around the release of Shibarium, Shiba Inu’s Layer 2 blockchain solution, is now clouded by the debate about its codebase. This rising drama has caused a drop of 10% over the last day. It happened right after Shibarium code made its layer-2 network beta version available.
The debate was initiated by a Twitter user named ‘Rancune’ when he shared screenshots of the Discord chats made between moderators and SHIB investors on Discord’s Bone channel. It raised concerns about the development team using a similar Chain ID to another existing protocol.
While the alleged theft code has damaged SHIB’s price, developers have raised their voices against the accusations stating that chain IDs for Shibarium had been picked at random, and there is no confirmation yet to prove that it was duplicated.
Communities like Justinlime defended the team by saying, “Even if some of the code was used in the beta does not mean all of it was. To me, it's very doubtful that it's a direct fork with nothing changed. Forking and building upon already established software is the core foundation of what FOSS (free and open-source software) stands for.”
Despite all the support and clarifications, developers might have to make a dedicated effort to clear Shibarium as an original protocol.
The Bottomline
Keeping aside the acquisitions, the launch of Shibariumin beta form, and SHIB: The Metaverse in the pipeline, investors are hoping for bigger and more profitable gains from SHIB in the months to come or even initiating a new bull market soon.