Shiba Inu's price has seen a significant 4.09% drop over the past 24 hours. As of September 11, 2023, SHIB is trading at $0.00000711, down from $0.00000741 yesterday. This latest price movement brings new opportunities and risks for traders looking to buy, sell or hold SHIB. In this technical analysis, we'll break down the key statistics behind this price shift and what they might indicate for SHIB's future outlook.

The driving force behind the 4.09% decline seems to be declining buying pressure and profit-taking after SHIB's price failed to break past resistance at $0.0000075. This level has acted as a ceiling for SHIB's upside moves over the past month. Now, with SHIB falling back below this barrier, additional sellers may be motivated to lock in gains from SHIB's rally in late August when prices reached as high as $0.0000093.

Looking at the volume data, SHIB traded $89.82 million over the past 24 hours. This is below the monthly average daily volume of $159.7 million. The lower trading activity likely contributed to SHIB's failure to push past overhead resistance. Bulls were not able to muster up enough momentum and volume to catalyze a breakout. Now SHIB is seeing gravity take over with the pullback.

Zooming out to the weekly time frame, the technical picture is fairly neutral. SHIB remains stuck in a trading range between support at $0.0000068 and resistance at $0.0000075. The moving averages are flat and directionless. The weekly RSI reads 49, reflecting the equal tug-of-war between buyers and sellers.

For short-term traders, SHIB may continue to consolidate between its well-defined support and resistance levels until a catalyst emerges to spark a breakout. The 4.09% 24-hour drop could extend towards the $0.0000068 support area where buyers could return. But a drop below $0.0000068 risks opening the door for a steeper selloff towards the 200-week moving average near $0.0000062.

On the bullish side, SHIB will need to take out resistance at $0.0000075 to signal a resumption of the uptrend. This could trigger a rally back towards the August highs around $0.0000093.

Is Shiba Inu Building a Base for Its Next Rally?

After surging over 750% in October 2021, SHIB has been struggling to regain its momentum. But there are signs the price pullback that started in late 2021 may be forming a long-term base for SHIB's next major rally.

The weekly chart shows SHIB carving out a potential double bottom pattern with the two lows formed in July 2022 and September 2022 around the $0.0000062-$0.0000068 zone. This sets up the bullish potential for an upside breakout and trend reversal after an extended period of consolidation.

The weekly RSI downtrend has also flattened out over the past few months, showing waning bearish momentum. This type of positive momentum divergence often precedes trend reversals on the price chart. The cycle indicator is also curling up from oversold levels, reflecting building upside energy.

Fundamentally, the Shiba Inu ecosystem continues to expand with new utility and integrations that could feed into a usage-driven price appreciation over the long run. For example, SHIB: The Metaverse recently acquired virtual land in the Otherside metaverse project, expanding SHIB's presence in web3 spaces.

Overall, the multi-month base pattern combined with easing bearish momentum increases the probability of SHIB staging a trend reversal rally within the next 3-6 months. The next break and weekly close above the $0.0000075 resistance would confirm the start of a new bull market. Initial upside targets sit around $0.000012 and $0.000015.

Can Shiba Inu Reclaim Its Spot Among the Top 10 Cryptocurrencies?

Shiba Inu held a spot among the 10 largest cryptocurrencies by market capitalization for most of 2021. But the brutal crypto bear market of 2022 knocked SHIB down to the 14th spot with a current market cap of $4.19 billion. This begs the question - does SHIB stand a chance of re-entering the top 10?

There is a reasonable probability that SHIB can reclaim a top 10 spot during the next full-fledged crypto bull market. Meme tokens like SHIB tend to benefit from hype-driven rallies once the overall sentiment in crypto turns bullish. And with the foundations being built like Shibarium Layer 2, SHIB: The Metaverse, and other ecosystem projects, SHIB has levers to pull to regain traction among crypto traders.

However, competition has intensified with new meme coins emerging like Dogecoin spinoff Dogebonk (DOBO) which briefly passed SHIB's market cap in early 2023. There is execution risk if the Shiba Inu team fails to ship promised products and utilities. This would make it difficult for SHIB to stand out from the pack of meme coins.

Nevertheless, as one of the most well-known crypto brands with 1.3 million twitter followers and a loyal online community, SHIB still enjoys valuable network effects. The technicals show signs of bottoming which could precede a swift recovery in SHIB's price and ranking. If developers continue innovating, there is a reasonable probability SHIB rejoins the top 10 before the next Bitcoin halving in 2024-2025.