The price of the popular meme cryptocurrency SHIBA INU (SHIB) has spiked 6.90% higher over the past hour to $0.00000838. This continues the wild volatility that has characterized the token, with SHIB up 10.14% in the past week but still down 28.69% over the past month.

SHIB remains a top 20 crypto asset by market capitalization, currently valued at $4.64 billion. Trading volume over the past 24 hours hit $77.62 million, showing that interest still exists in trading the highly speculative token.

For cryptocurrency investors and traders evaluating whether to buy into the latest SHIB pump or take profits, what insights can be gleaned from analyzing the current data? Here is a closer look:

Is SHIB Building a Base After the Recent Crash?

SHIB has whipsawed wildly over the past few months, crashing from an all-time high near $0.000088 in October 2021 to lows under $0.000017 in July 2022. The recent rally off the lows suggests buyer interest may be returning after capitulation selling exhaustion.

However, SHIB remains stuck in a strong downtrend, making it risky to assume a lasting bottom is in place. The meme coin likely needs a period of consolidation and basing to confirm the bleed lower is over.

If SHIB can establish support at around $0.000007 and hold that level on any pullbacks, it would give credence to accumulation occurring and building a base for the next leg higher.

How Will Broader Crypto Trends Impact SHIB Price Action?

Like other altcoins, SHIB's price will remain heavily influenced by broader crypto market sentiment and Bitcoin's price swings. If Bitcoin enters a renewed bull market, SHIB could ride positive momentum and see substantial inflows again.

However, the opposite also holds true. If the crypto bear market resumes as the Federal Reserve keeps hiking rates aggressively, speculative plays like SHIB would likely be among the biggest losers from risk-off selling.

Monitoring Bitcoin dominance and whether altcoin volumes return will be key for anticipating if meme coin mania could emerge again or if selling pressure persists.

What Technical Levels Should Be Watched for SHIB Breakouts or Breakdowns?

SHIB is approaching an important technical area around $0.0000075, which marks the halfway point of its recent trading range.

Bulls will try to regain this level and make it new support. Doing so could open the door for a run toward overhead resistance around $0.00001.

However, failure to hold the middle of the range would point to continued choppy consolidation sideways. A break below $0.0000065 would risk a steeper correction targeting the 2022 lows.

With SHIB still firmly in a downtrend, traders may wait for more evidence of base building and declining selling pressure before betting aggressively on renewed upside.

Final Thoughts on Trading SHIB Volatility

In summary, SHIB has bounced off its lows but remains stuck in a strong downtrend overall. The highly speculative token needs more time basing before likely seeing another bullish impulse. Traders should be cautious buying into short-term strength until the technicals and market structure improve. Monitoring Bitcoin trends and broader altcoin strength will be key going forward.

Is Another Major SHIB Price Rally Still Possible in 2022?

After its stunning rally in 2021, the question arises whether SHIB still has room for another parabolic price surge this year. The potential case for more upside exists but also faces challenges:

Bullish Scenario

If the crypto markets heat up again into frenzied conditions, SHIB could capture speculative inflows as it did last year. Meme coins tend to benefit from retail investor mania and hype cycles.

The SHIB ecosystem continues expanding with gaming and metaverse builds coming. If these generate renewed buzz and user adoption, it may flow into the token's value.

The Robinhood trading app listing SHIB would be a potential catalyst. This would open SHIB up to Robinhood's large client base and likely spark immediate buying demand.

If Ethereum fees rise further, traders may rotate into very low-cost alternatives like SHIB on a short-term basis to capture DeFi opportunities.

Bearish Factors

As a purely speculative play, SHIB lacks the fundamental catalysts to sustain meaningful rallies long-term outside of hype-driven pumps.

Competition is rising among meme coins and dog-themed tokens. New flavor-of-the-month gambles may divert flows away from SHIB.

Without Robinhood access currently, SHIB lacks a key on-ramp for retail traders who helped fuel its massive rally in 2021. This limits upside potential.

If the crypto bear market resumes, SHIB could seriously retrace from its current price back under $0.000001 again as speculators capitulate.

Final Verdict

While another parabolic SHIB rally can't be ruled out, the odds seem stacked against it in 2022 without clear bullish catalysts emerging. However, meme coin mania has a way of growing wild quickly. This makes SHIB unpredictable short-term, but long-term outlook appears bearish.

Is SHIB a Good Buy After Falling Over 80% From Its All-Time High?

Down around 85% from its peak, SHIB has seen a devastating decline alongside the broader crypto market selloff. This raises the question - is now a good time to buy the dip after such an intense capitulation? There are pros and cons to consider:

Arguments for Buying SHIB

At under $0.000009, SHIB trades at a fraction of its all-time high near $0.000088. This represents a deep discount and sizable drop that could be overdone.

SHIB looks extremely oversold based on the RSI plunging under 30 and stochastic RSI at rock-bottom. This signals panic selling exhaustion.

If the crypto market bottoms and rebounds, meme coins like SHIB tend to see huge inflows early in recovery rallies as speculators return.

The Robinhood listing could still materialize later this year as a potential catalyst. This would open SHIB to a wider retail audience.

Reasons for Caution

SHIB remains locked in a brutal downtrend with no signs of a reversal forming yet. Buying into capitulation is very risky.

With no real utility beyond speculation, SHIB lacks a fundamental value proposition to justify holding through bear markets.

Other meme coins and dog tokens have stolen the spotlight from SHIB recently. Interest appears to be waning without hype pumping it.

The Fed's continued hawkish stance on interest rates poses an overarching bearish threat on risk assets like cryptos.

Final Verdict

While the discounted price may seem attractive, substantial risks remain for buying SHIB before a clear trend reversal. Waiting for confirmation of capitulation and a basing pattern is warranted to avoid catching a falling knife. Patience is key even for long-term holdings after such a violent selloff.