Amid positive sentiment in the entire crypto market, Shiba Inu ($SHIB) price shot up by around 6% on a daily chart following upward momentum in the memecoin sector.
On April 16, the Shiba Inu ($SHIB) price jumped by around 6.92% in the last 24 hours, soaring its value from 0.000005935 to 0.000006338, according to CoinMarketCap. The cryptocurrency currently holds a market capitalization of around $3.75 billion with a daily trading volume of around $175.41 million.
Shiba Inu Breaks Out of One-Month Consolidation Range
Based on the current structure and technical indicators on TradingView, the outlook for the cryptocurrency is bullish as long as the price trades above $0.00000600 and $0.00000594. One potential trade setup is to wait for a pullback to the $0.00000603 to $0.00000600.
Today’s 7% gain is a major recovery with on-chain accumulation and ecosystem progress. The next major resistance level is at $0.0000065. At this level, the sustained volume could spark a breakout in the $SHIB’s price.
On the other hand, if Shiba Inu faces a correction and falls below $0.0000060. It is likely that memecoin would find support from the moving average.
The current price movement in $SHIB comes from bullish sentiment in the crypto market after Bitcoin (BTC) soared above $75,000 on Thursday.
With the current spike in the chart, Shiba Inu has broken a monthly consolidating pattern where the token holds just above the 50-day exponential moving average around $0.0000060. The current structure is showing that the price is respecting a recent trading range between $0.0000059 and $0.0000063 while testing higher levels after a period of sideways movement.
The current price chart is suggesting a clear daily close above $0.0000065 could confirm a breakout from this range and open the door for further upside in the short term.
Technical indicators are confirming the current bullish momentum in the $SHIB. The Relative Strength Index on the 14-day period is sitting at around 65, which shows a good buying interest while staying below the overbought territory of 70.
On the other hand, moving averages are showing that the price is trading above major daily lines to create a supportive structure for the currency recovery. The moving average convergence divergence indicator has its lines coiling in a way that suggests building momentum. However, the confirmation from higher volume will give a final confirmation about the rally in the memecoin.
According to on-chain data, exchange outflows have reached around 82.5 billion tokens in the past day. This shows that large holders are continuously moving their assets into private wallets for longer-term storage. Apart from this, there has been a steady whale accumulation since the beginning of April, with large holders adding over 2 trillion $SHIB tokens.
Along with the price, the daily trading volume of Shiba Inu also soared by around 60%. This shows heavy activity in the ecosystem that is increasing its price.
Shibarium has recorded around a 33% jump in daily transactions after recent infrastructure upgrades that improve network efficiency and block processing times. According to DeFiLIama, the layer 2 chain has now $597,489 in total value locked after a 37% jump in just the last 24 hours. The team has recently upgraded privacy features through planned full homomorphic encryption and started layer 3 testing to boost transaction speed.
A similar surge was also witnessed in the biggest memecoin, Dogecoin, thanks to the current bullish momentum in the overall crypto market.
