Shiba Inu's price has seen a slight 0.20% increase over the past 24 hours to $0.00000728. While this may seem insignificant at first glance, analyzing the cryptocurrency's market performance over various timeframes reveals some interesting insights. In this report, we will explore key metrics for SHIB and uncover trends that could influence future price action.

Summarizing the latest data, Shiba Inu currently has a market capitalization of $4.29 billion. Trading volume over the past 24 hours totaled $55.12 million. Short term price action shows SHIB is up 0.49% over the past hour but has declined 3.94% over the past 7 days. Zooming out further, the monthly and 6-month returns paint a bearish picture with SHIB down 31.20% and 35.66% respectively.

Now let's analyze these metrics in more detail to derive meaningful conclusions about where SHIB could be headed next.

What's Behind the Slight Single Day Price Uptick?

The 0.20% price increase over the past 24 hours seems negligible on the surface. However, considering SHIB has been mired in a strong downtrend over the past month, even marginal gains could signal a potential change in sentiment and trend.

Analyzing the volume data provides clues as to what may have driven this slight upside price move. The $55.12 million in trading activity over the past day is well below the monthly average of $97.15 million. This indicates the price uptick likely came on relatively low volume and wasn't fueled by a major influx of new buying pressure.

Rather, it may have been the result of short-term profit taking after the sizable sell-off SHIB has experienced recently. With prices becoming oversold on the longer-term charts, seasoned traders are accustomed to a "dead cat bounce" where prices temporarily swing higher before resuming the prior downtrend.

Can SHIB Maintain its Current Price Levels?

While the past 24 hours brought a faint glimmer of hope for the SHIB army, an analysis of the weekly price action shows there are still challenges ahead. As mentioned previously, SHIB's 7-day returns show the token has declined 3.94% week-to-date.

To maintain and build upon the current $0.00000728 price level, SHIB bulls will need to overcome key technical resistance near $0.0000076. This price level provided support throughout much of August 2022 when SHIB was trading range-bound between $0.0000065 and $0.0000076.

Now that SHIB has broken decisively below $0.0000076, that former support will likely act as resistance on any rally attempts. Significant buy volume will be required to overcome this barrier and prevent SHIB from rolling over and continuing its existing downtrend.

SHIB 1-Year Price Forecast: More Downside Before a Meaningful Recovery

Zooming out to a wider timeframe, the technical picture remains decidedly bearish for SHIB over the next 6-12 months. Looking at the weekly chart, SHIB is trading well below its 20-week exponential moving average (EMA) after breaking through support around $0.0000115 in early September.

Historically, SHIB has seen strong reactions at the 20-week EMA by either reversing course or accelerating its current trend. With the 20-week EMA still sloping downward and no major catalysts on the horizon, SHIB will likely trade within a descending channel over the coming year.

Upside price potential appears limited to the $0.0000076 - $0.0000085 range. Meanwhile, retests of the June 2022 lows around $0.0000065 seem highly probable.

For SHIB to invalidate this bearish outlook, it would need a sustained weekly close above $0.000012 to signal a potential trend reversal. Barring major fundamental developments, reaching that level again seems unlikely over the next 6 to 12 months.

Will Support Around $0.0000065 Hold, or Is More Downside Coming?

Shiba Inu is clearly in a strong downtrend based on an analysis of the price action and market metrics over multiple timeframes. However, the token now approaches a major technical support zone around $0.0000065 which halted the decline in June 2022.

As it retests this area over the coming weeks, the strength of SHIB's dedicated community will be tested once again. There is a possibility this support could hold and spark a relief rally back up to $0.0000076 resistance.

However, the lack of buy volume on recent bounces makes this setup precarious. With lower highs and lower lows defining the current trend, the path of least resistance is to the downside.

A decisive breakdown below $0.0000065 support would open the door to new lows for SHIB. The next potential support zone sits around $0.0000044 which marked the swing low in late-2020. Bulls will want to defend $0.0000065 vigorously to avoid plunging to these depths.

Is Now a Good Time to Buy, Sell, or Hold SHIB?

Given the predominately bearish signals across different timeframes, SHIB may not be ready for a sustained recovery rally yet. However, its substantial losses and deeply oversold technicals could spark a powerful but fleeting relief rally at any time.

Therefore, the best approach right now is to hold off on major long-term positions. Short-term traders can look to capture upside potential to $0.0000076 but should maintain tight stop losses.

Taking partial profits on any strength above $0.0000069 is prudent. Remaining patient and waiting for confirmation of a trend reversal is the wisest move for long-term holders. Alternatively, those with substantial losses may choose to cut their losses around $0.0000065 and reevaluate getting back in lower.

Key Takeaways

In summary, Shiba Inu's latest 0.20% single day gain to $0.00000728 appears underwhelming. But digging into the metrics reveals clues about SHIB's potential next moves. The limited upside came on low volume, indicating limited buying interest right now.

SHIB remains in a firmly bearish posture over the past month and longer term. While oversold conditions may fuel a relief bounce, significant resistance and a declining 20-week EMA could limit the recovery ahead.

New lows below $0.0000065 support seem probable in the months ahead. But a decisive breakout above $0.000012 would be needed to suggest a trend reversal is unfolding.

Until clear confirmation of sustained buying pressure emerges, patience and prudence remain prudent. Opportunistic traders can play short-term ranges, but major long-term positions are best avoided for now.