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Shiba Inu Price Forecast: SHIB recovery hinges on key support

  • Shiba Inu recovers slightly, trading at $0.0000044 on Wednesday, after finding support around the critical level.
  • Rising social dominance, positive funding rates, and rising long positions highlight improving market sentiment.
  • The technical outlook suggests a potential recovery if SHIB holds above the key $0.0000043 level.
Shiba Inu Price Forecast: SHIB recovery hinges on key support
Manish ChhetriManish ChhetriFXStreet

Shiba Inu (SHIB) recovers slightly, trading at $0.0000044 on Wednesday, after finding support around the critical level earlier this week. The dog-themed meme coin shows improving sentiment as social dominance rises, funding rates turn positive, and bullish traders increase their long positions. On the technical side, SHIB suggests a potential recovery if it holds above the key $0.0000043 level.

On-chain and derivatives metrics show improving sentiment

Santiment’s Social Dominance metric for Shiba Inu supports a bullish outlook. The index measures the share of SHIB-related discussions across the cryptocurrency media. It has been recovering and trending higher since August 16, with a reading of 0.016% on Wednesday. This rise indicates improving market interest and sentiment among the meme coin investors.

SHIB Social Dominance chart. Source: Santiment

On the derivatives side, metrics also show improving conditions. CoinGlass’ long-to-short ratio for the dog-themed meme coin read 1.01 on Wednesday. The ratio being above one, indicates bullish sentiment, as traders are betting the asset’s price will rise.

SHIB long-to-short ratio chart. Source: Coinglass

In addition, SHIB funding rates flipped positive on Tuesday, reading 0.0087% on Wednesday, indicating longs are paying shorts and signaling bullish sentiment.

Shiba Inu funding rates chart. Source: Coinglass

Shiba Inu technical outlook: SHIB finds support around key zone

Shiba Inu price retested the daily support level at $0.0000043 on Tuesday and found support around it. As of writing on Wednesday, SHIB is rebounding, trading above $0.0000044.

If daily support at $0.0000043 holds, SHIB could extend the recovery toward the 50-day Exponential Moving Average (EMA) at $0.0000046.

The Relative Strength Index (RSI) is nearing the neutral 50 level, reading 46 on Wednesday and indicating that bearish momentum is weakening. The Moving Average Convergence Divergence (MACD) also shows fading red histogram bars, further suggesting that bearish momentum is losing strength.

SHIB/USDT daily chart

However, if SHIB closes below the daily support at $0.0000043, it could extend the correction toward the next key psychological level of $0.0000040.

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Author

Manish Chhetri

Manish Chhetri is a crypto specialist with over four years of experience in the cryptocurrency industry.

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