Ethereum News Today: Shiba Inu Surges 6% as Bullish Market Sentiment Drives Price

Shiba Inu (SHIB) has recently exhibited signs of renewed strength, with its price surging by 6% and currently trading around $0.0000145. This upward movement follows a steady increase over the past week, positioning SHIB to test crucial levels on its chart. The overall crypto market is currently bullish, with Ethereum breaking past key resistance levels, which has positively impacted altcoins like SHIB.

On the daily chart, SHIB has broken out of the sideways range it was stuck in during June and early July, moving above the zone between $0.0000135 and $0.0000140. This breakout has directed SHIB towards the 200-day moving average, which sits at $0.00001467. The 200-day moving average is often seen as a long-term trend indicator, and if SHIB can break above and stay above it, this could confirm a bigger trend reversal.

The Relative Strength Index (RSI) is at 72.59, indicating that SHIB is technically overbought. This usually suggests that the price might take a short pause. However, during strong uptrends, the RSI can remain high for an extended period before cooling down. Support is currently around $0.0000135, with the next level to watch being $0.0000120 if that breaks. On the upside, the next resistance is at $0.0000158, where the price was rejected back in May.

Momentum indicators are flashing green, with the Ultimate Oscillator reading 55.23, showing there’s still room to go before it gets overheated. The Rate of Change (ROC) is high at 22.13, indicating that the price is accelerating rapidly. These indicators suggest that buyers are currently in control, pushing the price up with strength.

The bullish market sentiment is also helping SHIB. Ethereum’s rally is lifting the mood across the entire market, and when ETH is strong, altcoins usually follow. SHIB, being one of the most popular memecoins, is benefiting from this market trend. Memecoins tend to gain more attention when the market is hot, contributing to SHIB's recent bounce.

If SHIB can close above the 200-day moving average, it might see a move toward $0.0000158, the next resistance zone, which could act as a short-term target. If momentum stays strong, the SHIB price could even aim for $0.0000172, where it topped out in March. However, if SHIB fails to break the 200-day and pulls back, watch for a retest of $0.0000135. That level now needs to hold as support to keep the bullish structure intact.

Market analysts, including Cantonese Cat, are optimistic about SHIB's potential for a breakout. The positive sentiment is supported by significant purchases and rising social volumes, which have increased by 126% in the past 24 hours. This surge in social activity has attracted more retail investor attention, contributing to the bullish momentum. The current price of SHIB is $0.00001384, reflecting a 4.3% increase over the last 24 hours and a 14.1% rise over the past week. The cryptocurrency is approaching a breakout from two significant resistance levels, which could further propel its price. According to the analyst's forecast, if the market continues its rally, SHIB could reach $0.000020 by the end of August and potentially end the year close to $0.000040. This ascent is driven by a bullish double bottom pattern, which suggests a potential 110% rally to $0.000029.

However, some analysts remain cautious about SHIB's long-term prospects. They point out that the cryptocurrency's limited utility and reliance on community buzz may hinder its growth. Technical charts indicate a resistance level near $0.000032, and some models suggest an average price of around $0.000014 in the near term. For SHIB to stay relevant, it may need to shift away from its meme-driven approach and adopt more practical utilities to compete with emerging crypto projects focused on actual use cases.

Despite the challenges, SHIB's recent performance has drawn attention from major holders, with notable wallet activity signaling a potential push toward $0.00005 by 2025. The cryptocurrency's price outlook remains positive, with analysts divided on its potential to reach this target. Some believe SHIB could hit $0.00005 by late 2025, while others are skeptical due to its limited utility and continued reliance on community buzz.