Shiba Inu (SHIB) to Erase Zero in 3 Days if This Happens

After one of the cruelest corrections of the year, Shiba Inu might be preparing for a resurgence. Following the crypto market crash, the meme token’s price recently added a zero. However, it now seems to be stabilizing, and if momentum continues, $SHIB may be able to remove that zero in the coming days.

Shiba Inu market reversal

In an effort to create a base for a potential reversal, Shiba Inu has been consolidating closely near its local bottom, currently trading at about $0.0000098. The price action indicates that sellers are clearly exhausted, because there was a noticeable increase in buying volume following the large liquidation-driven decline that drove $SHIB below $0.000010.

Despite the high level of volatility, the last few sessions have shown smaller candles and less trading activity, which are typical indicators of market hesitancy prior to a breakout. Technically speaking, Shiba Inu has yet to regain any significant short-term bullish structure, as it continues to trade below all three major moving averages (the 50-, 100- and 200-day EMAs).

Another push for $SHIB

Nonetheless, the RSI’s proximity to 39 indicates that $SHIB is approaching oversold territory, which is typically where price reversals take place. To push $SHIB back above $0.000010 and remove the recently added zero, a clean breakout above the $0.0000112-$0.0000120 resistance zone would probably draw in new momentum traders and retail inflows.

For the next three days, volume confirmation is the most important thing to keep an eye on. A short-term rally may be in the works if trading volume rises and a green candle closes above $0.0000105, indicating that accumulation is taking place at current levels. Bullish sentiment may be strengthened by an increase in wallet activity or exchange outflows, according to on-chain data.