Leading meme coin Shiba Inu is showing signs of a potential bullish reversal after recently suffering a brutal sell-off.
With risk-on sentiment gradually returning to the crypto market, Shiba Inu’s price is poised to extend its gains in the short term.
SHIB’s Bullish Crossover Signals Momentum Shift
On June 22, SHIB briefly cratered to its lowest price in 16 months, dragged down by a broader crypto market downturn. However, sentiment shifted quickly after news of a ceasefire agreement between Israel and Iran sparked a relief rally across the crypto market.
SHIB trades at $0.00001162 at press time, climbing 16% from Sunday’s multi-year low. Technical indicators now suggest that the meme coin may be gearing up to extend these gains as July approaches.
Most notably, the token’s Moving Average Convergence Divergence (MACD) has just flashed its first succesful bullish crossover in 39 days, signaling improving momentum. Readings from the indicator show its MACD line (blue) resting above the signal line (orange) for the first time in over a month.
The MACD indicator identifies trends and momentum in its price movement. It helps traders spot potential buy or sell signals through crossovers between the MACD and signal lines.
When the MACD line rests above the signal line, it indicates bullish momentum, suggesting climbing buying activity. Traders often see this setup as a buy signal, which could drive more demand into the meme coin.
Furthermore, in recent sessions, SHIB’s Chaikin Money Flow (CMF) has climbed higher, indicating growing capital inflows and significant demand for the altcoin. As of this writing, this key momentum indicator is at 0.15 and climbing.
The CMF indicator measures how money flows into and out of an asset. A positive reading like this indicates that buying pressure outweighs selling pressure. It reflects strong capital inflows into SHIB, suggesting its investors are accumulating more positions.
Shiba Inu Eyes 17% Rally
This combination of improving market sentiment and bullish signals could set the stage for a continued rebound. If demand continues to soar, SHIB could rocket to $0.00001362, a 17% jump from its current value.
However, if profit-taking resumes and market sentiment flips bearish again, Shiba Inu’s price could dip toward the multi-year low of $0.00001004.
The post Shiba Inu Flashes Bullish Crossover After 16-Month Low — What’s Next? appeared first on BeInCrypto.
