Shiba Inu's SHIB token has seen its price increase 1.34% over the past 24 hours to $0.000007735, continuing its recovery from recent lows. In this report, we'll analyze the critical factors behind this latest SHIB price movement, and formulate an outlook on what may be next for the meme-inspired cryptocurrency.

Building Positive Momentum Over Past Week

Zooming out to a 7-day view, Shiba Inu has gained 3.69% as it bounces back from its sharp sell-off two weeks ago. This upward trajectory signals SHIB is regaining its footing and building positive momentum again after deep losses.

Trading Volume Still Muted

Despite the upside price action, Shiba Inu's 24-hour trading volume remains muted at $85 million. This is down significantly from its 2021 highs above $5 billion. For a more sustained SHIB recovery, trading activity will need to accelerate markedly.

Oversold Bounce Likely Nearing Exhaustion

Examining key indicators suggests Shiba Inu's oversold bounce may be approaching its limit. The relative strength index (RSI) on the daily chart is now at 54, nearing the upper end of its recent range. Additionally, SHIB is testing resistance at its downward sloping 50-day moving average. This confluence signals potential exhaustion ahead.

My SHIB Price Outlook for the Weeks Ahead

Given the technical picture, I expect Shiba Inu will likely stall around its current level of $0.000007735 before continuing its broader downtrend in the coming weeks. Critical resistance levels at the 50-day MA and $0.000009 appear very difficult to overcome without renewed meme frenzy. Patience is prudent for both SHIB bulls and bears at current levels.

Should You Buy the Dip in Shiba Inu?

crypto-opportunities-elsewhere">Likely better meme crypto opportunities elsewhere

While enticing for speculators, Shiba Inu's fundamentals and technicals remain weak, making the risk-reward of buying at current levels unfavorable. Other meme coins like Dogecoin show greater technical strength and community momentum for those seeking high-risk moonshot bets. Fundamentals-focused investors should look elsewhere entirely.

Does SHIB Have a Future as a Top Meme Crypto?

Faces stiff competition and needs major development breakthrough

For Shiba Inu to reclaim its status as a top meme-crypto contender long-term, substantial improvements in utility and real-world adoption are required. The project faces stiff competition from ascendant meme tokens like Dogecoin. Simply relying on hype is unlikely to be sufficient. The SHIB team must deliver technically for the project to differentiate itself moving forward.