Foreign media reports that Shiba Inu (SHIB) has risen nearly 10% in the past week, with the established meme coin regaining attention amidst a general consolidation in the crypto market. The article argues that this rebound is driven more by improved market sentiment, increased community activity, and a return of funds to higher-risk sectors, rather than by a single positive news event.
Over the past week, it has outperformed most meme coins.
The report mentions that crypto commentator David Gokhshtein has recently turned bullish on SHIB, citing a resurgence in market interest in established meme coins. According to him, SHIB and DOGE together account for more than half of the total market capitalization of memes, making them more likely to attract investment when the sector recovers.
The article also mentions that SHIB will celebrate its sixth anniversary on August 1st. This milestone has fueled increased community discussion and prompted the market to re-examine the project's evolution from a community-driven meme coin to a major crypto asset.
Breaking through the long-term downtrend line
From a technical perspective, the article argues that SHIB has broken through the long-term downtrend line that had been suppressing the rebound since January of this year. Previously, the $0.0000042 to $0.0000044 range provided support multiple times, after which the price broke upwards, accompanied by increased trading volume, indicating increased buying pressure.
- Weekly increase: close to 10%
- Near-term support zone: $0.0000042 to $0.0000044
- Short-term resistance level: $0.0000053
The first resistance level currently being watched by the market is around $0.0000053. If the daily chart continues to hold above this level, the next target could be $0.0000060, followed by a stronger selling pressure zone around $0.0000070.
Funds may continue to flow into high-risk sectors.
The article argues that, in addition to technical trends, sector rotation is also a significant factor behind SHIB's recent strength. As some funds shift from large-cap crypto assets to riskier niche sectors, memes are once again attracting speculative inflows. Compared to newly issued memes, SHIB boasts a larger community base, deeper exchange liquidity, and an expanded ecosystem including Shibarium, DeFi applications, and a token burning mechanism.
However, the article also mentions that if the buying momentum fails to sustain after the breakout, SHIB may still retrace to the $0.0000045 to $0.0000046 area before deciding on its next direction. Overall, foreign media believe that SHIB has returned to traders' attention, but whether it can continue its upward trend depends on whether it can effectively hold above the current key resistance level.
