The Shiba Inu price has witnessed strong buying momentum on weekends. This momentum came after a strong consolidation phase. The rally also coincides with SHIB’s upcoming sixth anniversary on August 1, marking six years since its 2020 launch on Ethereum, a milestone that has boosted community engagement and nostalgia around the token’s journey.
However, buyers have failed to carry the momentum, and a decent profit booking was spotted. The recent fall is just a retracement or the bullish move, or a planned move? Let’s explore
Why is the Shiba Inu price rising?
The latest rally appears to be driven by a mix of improving market sentiment and renewed confidence in the original memecoin ecosystem. Crypto market commentator David Gokhshtein, who commands a following of over 800,000 on X, recently noted that SHIB’s recent price action has made him increasingly bullish on the sector.
David Gokhshtein believes Shiba Inu’s recent strength is a sign that “OG meme culture is making its way back” into the crypto market. He points out that SHIB and DOGE together account for more than half of the entire memecoin market capitalization, underscoring how dominant the original meme tokens remain despite years of new competitors entering the space.
The bullish sentiment comes at a symbolic moment, with Shiba Inu approaching its sixth anniversary on August 1, six years since the token launched on Ethereum back in 2020. The milestone has reignited community engagement, with the project’s supporters reflecting on SHIB’s journey from a community-driven experiment to one of the largest digital assets by market capitalization.
Notably, no major ecosystem announcement or product launch has triggered this rally. Instead, the momentum appears to be driven by broader improving investor sentiment and renewed market attention toward established memecoins, suggesting SHIB’s strength is more a reflection of shifting risk appetite than any project-specific catalyst.
Shiba Inu price overview
Shiba Inu (SHIB) is currently trading at $0.000004661, down 8.63% intraday. The token’s market capitalization stands at $2.74B, with a 24-hour trading volume of $207.2M.
SHIB has remained in a bearish trend since March 2024, now down 94.71% from its all-time high. The Shiba Inu price recently broke below the key support level of $0.00000550, deepening concerns for holders. However, buyers have stepped in to defend the $0.00000400 level, and the token saw a sudden burst of bullish momentum over the weekend, hinting at possible short-term relief.
The Shiba Inu price has triggered a breakout. Can it unlock a 50% gain?
The technical chart indicates that the Shiba Inu price was declining while facing resistance from a descending trendline on the daily timeframe. However, the Shiba Inu price has since triggered a breakout from this trendline, posting a 39% gain within two days. More than half of this gain has since been erased over the following two days.
Source: SHIB/USDT price chart on 1-D timeframe by TradingView
Amid this pullback, the Shiba Inu price is approaching a crucial support zone at $0.00000450. If the price holds above this level and forms a bullish candlestick pattern, it could restore buyer confidence. A strong bounce from this zone may lift the price by up to 50% over the next few trading sessions.
On the other hand, if SHIB fails to defend this support level, a short-term bearish trend could take hold. A further slide below the key support of $0.00000400 would likely confirm this bearish shift, after which it may become difficult for buyers to stage a recovery.
Final Thoughts
Shiba Inu’s 39% two-day rally reflects a mix of short-term technical strength and symbolic timing rather than any fundamental or ecosystem-driven catalyst. With no major product launch or announcement behind the move, the surge appears tied to improving risk appetite across memecoins and renewed nostalgia ahead of SHIB’s sixth anniversary on August 1.
That said, the sharp pullback that followed shows buyers were unable to sustain the momentum, and profit booking has already erased more than half the gains. The $0.00000450 support zone is now the key level to watch; holding it could set up a relief bounce toward a possible 50% recovery, while a break below $0.00000400 would likely confirm renewed bearish pressure.
Given SHIB remains down over 94% from its all-time high and still trades within a broader bearish structure since March 2024, this rally looks more like a short-term technical bounce than the start of a trend reversal. Traders should watch price action around the support zone closely before drawing conclusions on direction.
Why did the Shiba Inu price rally 39% in 2 days?
Shiba Inu price rallied on the back of improving market sentiment, renewed interest in original memecoins, and symbolic timing ahead of SHIB’s sixth anniversary on August 1.
Can Shiba Inu price rally 50% from here?
A 50% gain is possible if SHIB defends the $0.00000450 support zone and forms a bullish candlestick pattern, restoring buyer confidence. However, this scenario depends on holding key support levels and isn’t guaranteed.
What happens if Shiba Inu breaks below $0.00000400?
If SHIB fails to defend the $0.00000400 support level, it would likely confirm a short-term bearish shift, making it difficult for buyers to stage a near-term recovery.