Shiba Inu price has been on a rally for the past few days, jumping to its highest level since May 2023 amid positive crypto market sentiment. Shiba Inu, the second-largest meme coin by market capitalization, has jumped by almost 17% in the past week and is up by 22% in the year to date. SHIB has also climbed by more than 27% in the month to date.
Behind SHIB’s Rally
Shiba Inu has been among the best-performing cryptocurrencies over the past week as the entire crypto market takes a positive swing. The asset’s total market cap has soared to $5.83 billion, ranking SHIB as the 14th largest cryptocurrency. The global crypto market cap has increased by more than 2% over the last day to $1.18 trillion, while the total crypto market volume edged 25.25% over the same period.
Bitcoin, the largest cryptocurrency by market capitalization, has taken off in an upward direction following weeks of stagnation and prolonged inactivity. Bitcoin price is higher and is once again challenging both technical and psychological level of $30,000. Bitcoin’s rally caused a spike in liquidations throughout the cryptocurrency market.
As such, most altcoins, including Solana, Shiba Inu, PEPE, Polygon, and Toncoin, among many others, have charted significant gains over the past 24 hours. As somewhat expected, the crypto market sentiment has improved. Traders and investors will be watching to see if this is just a bounce to key resistance zones or a more sustained rally.
Shiba Inu price has been on a strong bearish trajectory for the better part of this year, with its recent trend marking a shift from its long-term bearish sentiment. SHIB’s growth has also been buoyed by the positive on-chain activity, including its 81% jump in trading activity over the last day.
Notably, the fast-approaching Shibarium mainnet launch has also triggered Shiba Inu’s recent price growth seeing that bulls understand what is at stake. SHIB’s launch of its Layer 2 protocol, Shibarium, is slated for the Blockchain Futurist Conference expected to happen next weekend. With Shibarium enhancing usability through the emergence of decentralized applications (dApps), there is a possibility of high demand for Shiba Inu, increasing its influence in the meme coin ecosystem and pushing its price higher.
Shiba Inu Price Technical Analysis
The daily chart shows that the Shiba Inu price has been on an upward trajectory for the past few days, flipping above the major hurdle at the 200-day EMA at $0.00000930. At the time of writing, SHIB was trading 3.46% higher at $0.00000986. The meme coin has moved above the 50-day and 200-day exponential moving averages, with its Relative Strength Index (RSI) at 66, 4 points close to the overbought zone.
Therefore, I expect the Shiba Inu price to continue moving higher in the coming days as bulls eye the next resistance level at $0.00001075. A move past the aforementioned level will pave the way for further gains to $0.00001190. Conversely, we cannot rule out a move below the 200-day EMA which will invalidate my bullish thesis.