Shiba Inu Bulls and Bears at Loggerheads Over Crucial Support—What Does Analysis Suggest?

Shiba Inu sits at a local support level following the recent downtrend, with bulls and bears fighting to push prices their way.

The token is down 4% in the past 24 hours, a much lower decline than those seen from Bitcoin (-8%), Ethereum (-8.3%), and XRP (-10%). Amid the ongoing downturn, Shiba Inu now stands at a make-or-break support level.

Key Points

• Shiba Inu trades around a local support level following the recent downtrend, with bulls and bears fighting to push prices their way.
• Recent data indicate accumulation rather than distribution around this support level, supporting bulls.
• Key market indicators back the narrative that Shiba Inu might have bottomed.
• Shiba Inu would have to reclaim moving averages, such as the 100-day MA at $0.000008290 and the 200 EMA at $0.00000992, to confirm bullish momentum.

SHIB At Crucial Support

Currently trading at $0.00000647, SHIB sits at a key local support area. An earlier analysis suggests that support between $0.0000067 and $0.00000521 has marked historical bottoms, and the meme coin has never fallen below that level, further reestablishing its importance.

Meanwhile, bulls and bears are now at loggerheads over this support. This is largely because market participants know that how SHIB reacts in the area will determine whether it hits new record lows or rebounds to retest higher resistance levels.

Notably, recent data indicate accumulation rather than distribution around this support level. For context, CryptoQuant data shows that Shiba Inu has recorded a negative exchange netflow of 5.18 billion SHIB in the past 24 hours, suggesting that more of the token is leaving trading platforms than entering. This signals accumulation as bulls step in to defend the support level.

The SHIB exchange reserve has also dropped from 81.5 billion tokens on February 4 to 81.4 billion today, supporting the accumulation trend. The move suggests buying pressure, as bulls withdraw more of the token’s supply from exchanges for long-term holding.

Shiba Inu Exchange ReserveCryptoQuant## Is Shiba Inu Nearing Bottom?

Market watcher SwallowAcademy is among some of the analysts suggesting that the meme coin has bottomed. According to his recent TradingView analysis, he sees no “strong logical reason” for SHIB to continue dipping.

Key market indicators back this narrative. For one, the daily RSI stands at 31.45, very close to the oversold territory. The red MACD bars are also receding, indicating slowing bearish momentum. Shiba Inu also has a funding rate of 0.0042%, showing a slightly bullish tone.

As a result, SwallowAcademy expects buyers to take over the market proceedings from here and push the token upwards. His first target for this is the 200-exponential moving average, currently standing at $0.00000992.

Shiba Inu at SupportSwallowAcademyTo achieve this, SHIB would have to reclaim lower moving averages, such as the 100-day MA at $0.000008290, where its price faced selling pressure during the early January run. However, there is no guarantee of this, as price weakness might persist.