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Dog-themed cryptocurrency Shiba Inu (SHIB) has experienced a notable price surge recently, driven by increased buying pressure. SHIB's price has been steadily climbing since October, and it now hovers near the $0.00002 mark, a level seen as a significant resistance point.
At the time of writing, SHIB was up 3.18% in the last 24 hours to $0.00001927, after reaching highs of $0.00001956 in the early Saturday trading session. The token is up 8% weekly and has reclaimed the 12th spot in the crypto ranking with a market valuation of $11.35 billion.
The recent SHIB surge is part of the broader trend that has seen meme coins gain attention this week.
According to Santiment, this week has seen a significant surge in meme coin discussions. Traders are doubling down on high-leverage speculative meme coins as Bitcoin nears the $70,000 market, causing their discussion rates to reach the highest level since May.
Shiba Inu is currently trading close below the $0.000020 overhead barrier, showing that bullish pressure has been maintained.
Will this breakout level hold?
According to on-chain data, $0.0002 represents the resistance of a range where a substantial amount of SHIB is being held. Data from IntoTheBlock indicates that 437.68 trillion SHIB is currently being held in the range of $0.000018 and $0.000020 by 44,700 addresses.
As SHIB nears $0.00002, technical analysts are closely watching SHIB's price action to determine whether this breakout level will hold. The $0.00002 mark is seen as a critical resistance level, and breaking through it could pave the way for further gains. However, if SHIB fails to sustain this level, it could face a pullback.
The RSI is positive, indicating the possibility of a breakout. If the price closes above $0.000020, Shiba Inu will form an inverted head and shoulders pattern. This reversal setup's target objective is $0.000028.
On the other hand, if profit-taking occurs and Shiba Inu falls under the 50-day SMA of $0.000015, this could extend its stay in the $0.000012 to $0.000020 range for a little longer.