Shiba Inu (SHIB) reversed after bottoming out for 16 months: Is the recovery trend sustainable?

Shiba Inu – the top meme coin in the market – is signaling the first signs of a bullish reversal after enduring a wave of heavy selling.

In the context of risk appetite gradually returning to the cryptocurrency market, SHIB stands before the opportunity to extend its short-term recovery, opening up hopes for investors after a period of decline.

The bullish crossover of SHIB signals a change in momentum

On June 22, Shiba Inu (SHIB) plunged to its lowest level in 16 months, reflecting the pervasive pessimism across the cryptocurrency market. However, the situation quickly changed when news of a ceasefire agreement between Israel and Iran was announced, bringing a wave of optimism back to the market and leading to a widespread recovery.

As of the time of writing, SHIB is trading around $0.00001162, marking a 16% increase from the multi-year low established on Sunday. Current technical signals suggest that this meme coin may be entering a new acceleration phase as July approaches.

Notably, the MACD (Moving Average Convergence Divergence) indicator of SHIB has just recorded its first bullish crossover after 39 days — a clear signal that the upward momentum is returning. Specifically, the green MACD (has crossed above the orange signal line ) — the first time in over a month.

The daily MACD indicator for SHIB | Source: TradingViewMACD is a popular tool in technical analysis, helping investors assess price trends and volatility intensity. The crossover between the MACD line and the signal line is often seen as a potential buy or sell signal. When the MACD rises above the signal line, it implies that the bulls are in control and the bullish momentum may continue. This setup is usually viewed by traders as a sign of the beginning of a new recovery cycle, which could further boost demand for SHIB.

In addition, the Chaikin Money Flow (CMF) indicator for SHIB is recording a clear bullish trend in recent sessions, reflecting a strong influx of capital and significantly increasing demand for this altcoin. As of now, the CMF index has risen to 0.15 and shows no signs of cooling down.

The CMF indicator on the daily timeframe of SHIB | Source: TradingViewCMF is an indicator used to measure the flow of money in and out of an asset. When this index maintains a positive value, it indicates that buying pressure is outweighing selling pressure — a signal that capital is actively flowing into SHIB. This also means that investors are taking the opportunity to accumulate, betting on the recovery prospects of this meme coin.

Shiba Inu aims for a bullish 17%

Investor sentiment improvement, combined with technical signals, indicates that a bullish trend is forming, which could pave the way for a sustainable recovery of SHIB. In a positive scenario, if demand continues to strengthen significantly, the price of SHIB has the potential to reach $0.00001362 — equivalent to an increase of nearly 17% from the current level.

SHIB/USDT daily chart | Source: TradingViewHowever, the downside of the picture is that if profit-taking pressure increases again, along with a weakening market sentiment, the Shiba Inu coin risks falling back to the multi-year low around the $0.00001004 level.

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