Shiba Inu price recovers above $0.00000489! What are the key resistance levels now?

Shiba Inu has shown signs of a short-term recovery in the second half of the week, signaling a potential turnaround after consecutive declines at the start of the week. On Friday morning, the popular memecoin bounced to $0.00000489, recouping some losses. However, broader market pressures and lingering bearish sentiment remain evident as the crypto market navigates ongoing economic headwinds.

Reaction after macro data

The downtrend at the start of the week was fueled by concerns over inflation and expectations that interest rates will remain elevated for an extended period. Both the cryptocurrency market and gold came under pressure amid these macro worries, leading to notable losses across risky asset classes.

A partial recovery unfolded when the Consumer Price Index (CPI) data aligned with forecasts. According to the United States Bureau of Labor Statistics, CPI rose 0.5% month over month, while annual inflation came in at 4.2%. This provided a brief reprieve for embattled investors, helping cap further declines.

Thursday’s Producer Price Index (PPI) data, however, surprised on the upside. The PPI climbed 1.1% month over month and reached an annual pace of 6.5%. This unexpectedly high data point cast doubt on the future trajectory for risk assets, leaving investors questioning the durability of any rally.

Golden cross forms on the hourly chart

Shiba Inu posted a short-term bounce from its Wednesday low at $0.00000455, which attracted renewed buying interest. Technically, this rally pushed the 50-period moving average above the 200-period moving average on the hourly chart, triggering a coveted “golden cross” signal often watched by technical analysts.

Glossary: A golden cross is a technical signal triggered when a short-term moving average crosses above a long-term moving average. While this can indicate strengthening momentum, it does not single-handedly confirm a sustainable uptrend.

Despite this technical development, the prevailing trend remains weak. Shiba Inu is still trading within a longer-term downtrend that began in early June, hitting a multi-year low of $0.00000431 on June 6. While momentum indicators show the token is deep in oversold territory, only a limited recovery has materialized so far and selling pressure continues to weigh on the price.

Key levels and the Mercari effect

The first critical resistance for Shiba Inu in this rebound appears to be the daily 50-period moving average at $0.00000573. Breaking above this level may pave the way for a test of the next major technical threshold at $0.0000066, which is the daily 200-period moving average that traders are watching closely.

Meanwhile, a positive development also emerged for the token during the week. Mercari, one of Japan’s leading online marketplaces, added SHIB to its roster of supported cryptocurrencies. With Mercari serving 23 million monthly users, this integration could offer Shiba Inu direct exposure to a sizable new audience. The e-commerce giant is primarily known for its vibrant secondhand goods market in Japan.

The post Shiba Inu price recovers above $0.00000489! What are the key resistance levels now? appeared first on COINTURK NEWS.