Shiba Inu (SHIB), Ethereum’s leading meme coin, has kicked off December with a significant price surge, defying the broader market’s gloomy outlook. After weeks of low liquidity and diminishing sentiment, SHIB has posted an 11% gain over the past 10 days, reaching a price of $0.00000899. This move marks a notable reversal after a long period of stagnation, catching the attention of both investors and analysts alike.
What makes this recovery particularly remarkable is the backdrop of ongoing market uncertainty. The Fear and Greed Index remains firmly in the “fear” territory at 22, showing extreme fear levels of 16 earlier this week. Despite this, SHIB has managed to climb higher, suggesting that its recent price action is more driven by chart mechanics than investor sentiment. This shift indicates a potential technical reversal for the token.
The SHIB price pattern reveals a structure that is not typical but has often appeared in assets that linger under their moving averages for extended periods. Currently, SHIB is testing the key resistance levels set by the 23-day Simple Moving Average (SMA) at $0.00000863 and the 50-day SMA at $0.00000934. These moving averages are converging into a crucial zone, with the potential to either halt SHIB’s momentum or propel it higher, depending on the strength of the next market impulse.
Potential for Further Upside: 200-Day Moving Average in Sight
The 200-day moving average, located at $0.00001175, is now the ultimate target for SHIB’s recovery. Achieving this level would signify a 30% increase in SHIB’s price, and more notably, it would result in the deletion of one zero from its current price. This possibility has reignited hope among SHIB holders who had been doubtful about a strong rebound.
While the path to this 200-day moving average is not without challenges, SHIB’s recent momentum suggests that a continued rise is plausible. As long as the price can hold above the $0.00000800 level, the upward movement toward the 200-day SMA appears to be a realistic goal. This could mark a significant turning point for the meme coin, as it challenges the negative sentiment that had dominated the market in recent months.