Shiba Inu (SHIB) Price Rebounds 20% This Week, But Will the Recovery Continue?

Shiba Inu's price continued its recovery this week as Bitcoin and most altcoins bounced back and the crypto fear and greed index stabilized.

Shiba Inu’s (CRYPTO: SHIB) price continued its recovery this week as Bitcoin and most altcoins bounced back and the crypto fear and greed index stabilized.

Here's what happened to Shiba Inu this week.

Shiba Inu price up 4 days in a row: SHIB token price rose for four consecutive days this week, reaching a high of $0.000020 on Thursday. This was its highest price since June 17.

Shiba Inu token burn momentum slows: Shiba Inu's rally coincided with Bitcoin jumping to a high of $65,000 for the first time since June 19 and the crypto fear and greed index approaching the greed zone of 60.

Other meme coins performed well this week. As reported earlier, tokens like Pepe, Floki, Dogwifhat, and Brett were up by over 20% in the past hours.

However, Shiba Inu's daily trading volume of $650 million was smaller than Pepe's $2.9 billion. It was also lower than Dogwifhat's $978 million and Floki's $978 million. This showed that Shiba Inu, along with Dogecoin, is losing momentum among traders.

On-chain data showed that the volume of Shiba Inu token burn has dropped in the past few weeks. The biggest burn this month happened on the 11th when users burned over 72 million tokens. Since then, it has averaged less than 200,000 a day.

Shiba Inu monthly burn

Crypto traders are now focusing on Shiba Inu's chart for clues on whether the ongoing recovery will continue.

Shiba Inu price crossed a key resistance

SHIB price chart

On the daily chart, the ongoing rebound occurred after the token formed a hammer pattern on July 5. This pattern is one of the most popular bullish reversal signs in the market.

Shiba Inu has now crossed the important resistance point at $0.000018, its lowest swing on April 13, indicating that it is gaining momentum.

Most importantly, the token has now found substantial resistance at the 200-day Exponential Moving Average (EMA).

Therefore, more upside will be confirmed if the token breaks above this EMA and closes above its intraday high of $0.000020. If it fails to do that, it will form a doji or a shooting star candlestick pattern and resume its downtrend.

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