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Dog-themed cryptocurrency Shiba Inu (SHIB) rebounded sharply in Friday's trading session after four days of losses, bouncing off a key support level. Shiba Inu rebounded upon reaching $0.0000185, a level near the daily 200-day Simple Moving Average (SMA), as traders rushed to buy the dip.
The rebound highlights the importance of the $0.0000185 level, which appears to have acted as a springboard for the recent rally. This area has proven significant as a point where buyers stepped in to defend SHIB’s price.
The recovery saw SHIB's price climb to highs of $0.000024 in Saturday's session before slightly pulling back. At the time of writing, Shiba Inu was trading at $0.000022, up 11% over the last 24 hours.
The broader cryptocurrency market is showing signs of recovery after Friday's massive sell-off, with Bitcoin and Ethereum also posting gains. Shiba Inu’s sharp rebound aligns with this trend.
Additionally, on-chain data suggests accumulation by large holders, or "whales," who might have been buying up SHIB at a discount during the dip.
According to IntoTheBlock data, Shiba Inu large holder inflows, which track funds going into whale addresses, suddenly skyrocketed 824%, from 1.9 trillion SHIB on Dec. 19 to 7.72 trillion SHIB on Dec. 20.
What's next for Shiba Inu price?
As Shiba Inu continues its recovery, the market will be closely monitoring key support and resistance levels. The ability to break through the daily SMA 50 at $0.0000252 could signal a continuation of the upward trend, potentially leading to further gains.
A decisive break above this level could pave the way for SHIB to target the $0.000033 high. Conversely, a failure to breach the 50-day SMA could see SHIB retrace to retest the $0.0000185 support range.
Market sentiment remains cautious, with traders closely monitoring Shiba Inu’s price action to see where it trends next following the recent massive sell-off. A breakout could signal further bullish momentum, while a rejection may result in consolidation or a retest of support.