Soared with Dogecoin and Pepe… Will Shiba Inu run up to $0.0000065?

▲ Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE) ©

Shiba Inu (SHIB) showed a sharp upward trend, breaking through a key resistance line that had lasted for two months, driven by the strong risk-asset preference sentiment triggered by Bitcoin and the rotational buying in the memecoin sector.

According to cryptocurrency market data aggregator CoinMarketCap on September 22 (local time), SHIB rose 8.93% in 24 hours to $0.00000593, showing a solid increase that outpaced the overall cryptocurrency market's gains.

This surge is strongly linked to the broader market momentum, with Bitcoin (BTC) soaring 7.32% to break above $86,000. A short squeeze occurred in the futures market, liquidating over $454 million in Bitcoin short positions, creating a strong macroeconomic liquidity rally where the total cryptocurrency market capitalization increased by 6.03%.

The rotational buying of funds into the overall memecoin sector and positive news from the Shibarium ecosystem also supported the upward trend. As buying interest concentrated on high-beta meme tokens, with Dogecoin surging 13.66% and Pepe 24.34%, news of infrastructure improvements, such as the resolution of block reorg issues on the Layer 2 infrastructure Shibarium, stimulated investor sentiment.

From a technical analysis perspective, SHIB broke through the $0.00000560-$0.00000570 resistance zone that had capped its upside for the past two months. If the $0.00000560 support level is stably defended on a daily basis, there is a high probability of challenging the Fibonacci 161.8% extension levels of $0.00000650 and $0.00000620. Conversely, if it fails to defend the breakout support level, there is a risk of falling back to the $0.00000500-$0.00000520 range where major moving averages are clustered.

Experts diagnosed that with the Relative Strength Index (RSI) at 72.51, nearing the overbought zone, the key to further gains will be whether it can absorb profit-taking at the psychological resistance of $0.00000600 and maintain trading volume above the 7-day average.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*