Shiba Inu (SHIB) Price Rebound: Bullish Signals Emerge

Shiba Inu Finds Footing: What's Next?

Shiba Inu (SHIB) experienced a slight downturn, dropping nearly 10% over the past week. Despite this, it maintains a 7% gain for the month. Traders are now watching closely to see if SHIB can sustain its momentum amid broader market uncertainty.

Key Indicators Suggest Potential Upside

Exchange Reserves Remain Low

Shiba Inu's exchange reserves, an indicator of potential sell pressure, are currently near their yearly lows. After hitting a 12-month low of 895.9 billion SHIB on June 22nd, reserves have slightly increased to 1.04 trillion as of August 5th.

This figure remains significantly below the yearly average, indicating limited profit-taking and a lack of panic selling. Low exchange reserves often suggest either reduced exchange inflows or that major players are offsetting selling pressure—both potentially bullish signals for the Shiba Inu price.

Bullish Divergence in Money Flow

The Chaikin Money Flow (CMF) indicator is showing a bullish divergence, which could mean strong buying interest. On July 31st, CMF reached a peak before a brief pullback. By August 3rd, it printed a higher peak, despite SHIB experiencing a lower low during the same period.

This suggests hidden accumulation and increasing buying pressure, even amidst short-term price weakness.

Ascending Support Holds, Resistance Looms

SHIB recently rebounded from the lower trendline of an ascending triangle, a significant technical pattern. This upward-sloping base is still intact, suggesting the overall structure remains bullish. However, SHIB faces resistance at multiple levels.

The price is currently below 0.00001258, with resistance levels at 0.00001318 and 0.00001368. A break above these levels could pave the way to the key breakout level at 0.00001599. A sustained move above this level would confirm a higher high, a key trend reversal structure SHIB hasn't formed recently.

A breakdown below the ascending triangle's lower trendline, currently near 0.00001160, would negate the bullish outlook.

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