Shiba Inu (SHIB): Price Bounces on 2024’s Ultra-Support

Shiba Inu has once again established itself in what can only be called its ultra-support zone. This is the same crucial level that served as the basis for the remarkable comeback observed in early 2024.

Shiba Inu under pressure

After momentarily falling below the critical $0.0000090 threshold, SHIB has slightly recovered and is currently trading close to $0.0000093. This price range has historically drawn buying pressure, indicating a possible turning point in market sentiment. The last time SHIB was in this range was during a strong multimonth rally in February 2024, which almost quadrupled its valuation.

However, the current situation is very different. While growing retail inflows and growing enthusiasm for meme coins helped fuel the 2024 bounce, the current climate is burdened by macro uncertainty, diminished liquidity and waning momentum throughout the larger cryptocurrency industry.

Are bears exhausted? 

Technically speaking, the chart indicates that bearish exhaustion may be beginning as SHIB stabilizes just above this long-standing horizontal base, with the RSI hovering around 40. The 50-day, 100-day and 200-day exponential moving averages (EMAs) are all still stacked above the current price, indicating that SHIB is firmly in a bearish phase.

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Despite being noteworthy, the bounce has not yet broken any significant resistance levels; the first real test is currently at $0.0000105. It is a make-or-break situation for investors. If on-chain activity starts to improve and speculative sentiment returns, a persistent defense of the $0.0000090 level could serve as the foundation for a gradual recovery.

On the other hand, SHIB’s 2024 gains would be eliminated if there were a clear break below this floor, which would probably lead to a deeper retracement toward $0.000075.

SHIB’s recovery from its 2024 ultra-support may provide some breathing room for short-term traders. However, the larger trend is still brittle and susceptible to another leg down until the token regains higher ground above $0.000011.