Shiba Inu (SHIB) Surges 2.66% as it Tests Key Resistance Level

Shiba Inu (SHIB) is currently in the spotlight as it approaches a critical resistance level, with traders closely monitoring its price movements. As of the latest update, SHIB is priced at $0.00001228, reflecting a 2.66% increase over the past 24 hours. This upward trend has garnered significant attention from traders, despite a minor 0.49% decline over the past week. The token's steady climb from its recent sideways trading area has revitalized positive market sentiment. With a massive circulating supply of 590 trillion tokens, SHIB’s market cap now stands at approximately $7.23 billion.

Crypto analyst SHIB KNIGHT has noted that the SHIB/USDT pair is currently testing a critical resistance level around $0.00001233. This price point has historically served as a support level and now acts as a strong psychological barrier. Traders have made several attempts to push through this resistance, indicating growing buyer interest. If SHIB manages to close above this resistance, it could unlock further upside potential, potentially reaching the $0.00001300 mark.

However, the success of this breakout hinges on volume strength and the integrity of the candlestick structure. Without strong volume backing the move, there remains a risk of a fake-out. SHIB KNIGHT highlights that a successful breakout could see short-term targets near 1570, suggesting room for upward movement. The chart reveals that SHIB previously peaked near the $0.00003000 level, which triggered a wave of long liquidations totaling up to $11.6 million. This price area remains a significant overhead hurdle.

The steep price drop that followed sent SHIB into a sideways trading period concentrated around the $0.00001000 level. During this time, both volatility and liquidation volume dropped significantly, hinting at a stabilizing base. Significantly, long positions have been consistently punished during rapid price surges. In contrast, smaller short liquidations occurred during brief rallies, showing an imbalance in market expectations. This dynamic suggests that traders are cautious about the token's potential for sustained upward movement, despite the recent bullish momentum.