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On April 18, Shiba Inu ($SHIB) plunged by around 5% on a daily chart despite bullish momentum in the crypto market, sparking panic among the memecoin investors.
At the time of writing this, $SHIB is trading at around $0.000006088 with a drop of 4.82% in the last 24 hours, bursting the hope of a longer rally in the memecoin. The current market capitalization of the memecoin is around $3.6 billion, with a daily trading volume of around $139.88 million, according to CoinMarketCap.
Shiba Inu Falls Again After Hitting Major Resistance at $0.0000064
On Friday, the $SHIB price managed to break above $0.0000063 following a rally in the Bitcoin ($BTC) price. However, the cryptocurrency failed to sustain a rally despite a bullish sentiment in the overall crypto market.
The overall crypto market maintains a bullish sentiment despite isolated drops like the one seen in Shiba Inu. This week, a strong rally in Bitcoin, where $BTC jumped above $77,000, has sparked euphoria in the crypto community. This rally in $BTC has lifted a cumulative market capitalization of around $2.57 trillion. This spike in the biggest cryptocurrency comes from steady institutional inflows through spot exchange-traded funds.
However, Bitcoin ($BTC) also plunged by around 1.37% on a daily chart on Saturday and is currently trading at around $76,181 with a cumulative market capitalization of $1.52 trillion.
Apart from this, major regulatory developments in the crypto sector have provided clarity to crypto innovations. These factors created a favorable environment where risk assets like meme coins gained some attention even during minor corrections.
According to the current price chart, Shiba Inu is following a symmetrical triangle pattern on the 30-minute chart. This pattern shows that the memecoin might go for a breakout once the price soars above the major boundary.
This pattern on the price chart is showing that the memecoin is trading in a tight range between $0.0000056 and $0.0000063 for many weeks now. This consolidation pattern is showing limited directional momentum in the price in the near term. However, it might see a breakout if the price soars above the resistance level.
According to the popular indicators, the memecoin is currently in a neutral state. The relative strength index is sitting at around 36, suggesting that it is in a neutral to slightly bearish trend. This means that the token is just trading above the oversold territory.
At the same time, most daily moving averages are giving sell signals as the price is trading below longer-term averages like the 100-day and 200-day trendlines.
On-chain data is giving additional context in the Shiba Inu price. Recent data is showing that around 82.5 billion Shiba Inu tokens left exchanges in a single 24-hour period. This is showing whale accumulation and reduces immediate selling pressure on order books. Before that, exchange outflows soared significantly after volumes reached 321 billion tokens in removed tokens.
In the upcoming time, the Shibarium Layer 2 network is preparing for a major 2026 upgrade focused on full homomorphic encryption. This will enable confidential smart contracts and improved privacy for users. This update is also targeting faster and cheaper transactions to make the network more attractive for developers and applications.