Shiba Inu (SHIB) Price Shows Resilience Despite Rejection From Key Resistance Levels, Reaches New Milestone

Shiba Inu, the second-largest meme cryptocurrency, has shown resilience in recent days following a substantial rejection from key resistance levels.

Shiba Inu (CRYPTO: SHIB) price pulled back nearly 20% after rallying to $0.0000152 last week. The new lows came amid broader market weakness as Bitcoin (CRYPTO: BTC) pulled back from $87,600 to lows of $82,400 on Monday. This 5.8% move triggered panic selling across altcoins.

Shiba Inu’s price is showing resilience despite the substantial rejection from key resistance levels and mixed market conditions. As the popular token’s recovery continues to be a topic of discussion, there has also been notable progress on the Shiba Inu Layer-2 blockchain, Shibarium.

What Happened: Shiba Inu’s token pulled back from key resistance levels last week as Bitcoin triggered broader market volatility with a 5.8% price decline from recent highs of $87,600.

The Relative Strength Index (RSI) on the daily chart is also showing signs of recovery and could soon rise above the neutral 50 level, which would be another indication of renewed bullish momentum.

Shibarium, the Layer-2 blockchain being developed by Shiba Inu, reached a major milestone on March 31, processing its billionth transaction since launching in August 2023.

For context, Bitcoin took 15 years to reach the same transaction volume. Shibarium's rapid rate of growth speaks to its capacity to handle high transaction loads and suggests increasing adoption within the cryptocurrency ecosystem.

The Layer-2 blockchain is currently processing about four million transactions a day across more than 193 million addresses. So far, the network has mined over 10.23 million blocks with an average block time of five seconds, showcasing its resilience even amid technical challenges.

Earlier this year, Shibarium faced some issues that led to its temporary downtime shortly after the initial launch.

Shibarium’s progress comes as the Shiba Inu community is focusing on developing utility for the token and plans for burning the token to support price appreciation.

What Next For Shiba Inu: The 4-hour chart shows that SHIB struggled to hold key support levels at $0.000013 and $0.0000125 during the recent decline. However, the subsequent 20% bounce has seen prices trade back above the $0.0000125 mark.

This presents a contrasting picture between timeframes, with the 4-hour chart displaying bearish structure while the daily chart maintains a bullish outlook. Considering that higher timeframes usually carry more weight for swing traders and investors, there is still a case to be made for opening long positions.

The token's price action is showing signs of a Morning Star pattern developing after Monday’s Doji candlestick formation.

However, the Exponential Moving Averages (EMAs) are presenting significant resistance on the way higher, with the immediate hurdle coming from the 20-day EMA at $0.000013.

Shiba Inu is trading at $0.00001206 at the time of writing, showing a 3.9% increase over the past 24 hours. The token’s price is up 10.5% over the past seven days, indicating strong bullish momentum.

Shiba Inu’s price is still down 85.22% from its all-time high of $0.00008043 reached in October 2021, highlighting the significant price volatility that meme cryptocurrency investors often face.

Shiba Inu is currently the 17th largest cryptocurrency with a market cap of $8.3 billion. To break into the crypto top 10 ranking and displace ninth-place Cardano (CRYPTO: ADA), Shiba Inu would need to rise 224%.

Shiba Inu would need to rally 55.56% to reach its all-time high again.