Shiba Inu has approached an important threshold that will determine the fate of memecoin in the near future: the token will either show us an exceptional performance or fall back into gradual consolidation for a few days or even weeks.
Today, Shiba Inu is continuously moving towards the upper limit of the consolidation range formed in June. This range is one of the longest consolidations for this asset that entered a downtrend in November. Traditionally, prolonged consolidations are a sign of an upcoming trend reversal.
This breakout attempt will be the fourth test of the consolidation zone resistance level, which prevents SHIB from entering an accelerated rally. Despite the limited price performance, Shiba Inu was able to bounce above the $0.00001 price range, which is crucial for the coin’s development in the market.
From a technical standpoint, Shiba Inu is performing the best since November, when it faced a massive spike in inflows after retailers discovered the notorious memecoin. The token broke a significant resistance level and entered the classic consolidation zone that could help it enter a reversal rally. The trading volume is steadily increasing.
SHIB’s fundamental value
Fortunately, the developers of the project have tried to make SHIB something more than an extremely speculative and volatile asset that does nothing more than attract retail investors looking for risk exposure.
In addition, we are seeing a steady increase in the volume of burned Shiba Inu tokens that act as excellent fuel for the token with such a large outstanding supply remaining in the hands of retail investors.