The $0.00002 price level, which is a crucial psychological threshold for the asset and its holders, has been regained by Shiba Inu . On the surface this move might appear encouraging, but a more cautious picture is painted when the market dynamics are examined more closely. For SHIB , $0.00002 has historically served as a key support and resistance zone frequently affecting market sentiment.
Its recent rise above this level suggests that buyers are somewhat interested in stopping additional declines. But there isn't enough conviction or strength in the price action to support a bullish reversal. The lack of trading volume is one of the main issues. There was no discernible rise in buying activity during the recovery above $0.00002, which is essential for maintaining upward momentum.
This implies that the market remains cautious and that SHIB's comeback may not be robust enough to withstand widespread selling pressure. The lack of momentum in SHIB 's price movement is another problem. The lack of fervor among traders is further highlighted by indicators like the RSI (Relative Strength Index), which display neutral to bearish conditions.
The fact that SHIB is still below important moving averages like the 50-day and 200-day further emphasizes how difficult it will be to win back market trust. SHIB requires a large inflow of buying volume to overcome its immediate resistance levels, especially those around $0.0000216, in order to continue its recovery and start a meaningful upward trend. If this is not done, the asset could slip.
For now, the momentum and volume are key factors when deciding SHIB's faith. Unfortunately, the sole fact of the price comeback is not enough to provide investors with a proper recovery rally on Shiba Inu, at least for now.
