Shiba Inu up 16% from 16-month low; MACD crossover signals short-term rally

Shiba Inu, one of the most widely tracked meme coins in the cryptocurrency market, has rebounded sharply after falling to a 16-month low.

The meme token surged more than 16% from its bottom of $0.00001004 and is currently trading at $0.00001159, despite a marginal 0.27% decline in the last 24 hours.

Source: CoinMarketCap

The latest technical indicators, including a bullish MACD crossover and rising capital inflows, suggest SHIB may be setting up for a potential continuation of this recovery in the short term.

The reversal coincides with a temporary boost in investor sentiment following news of a ceasefire agreement between Israel and Iran.

This relief triggered a broader rally across the digital asset space, helping meme coins like Shiba Inu recover some of their recent losses.

MACD crossover points to trend reversal

Shiba Inu’s price drop to $0.00001004 on 22 June marked its lowest level since early 2023, driven by broader market weakness.

Since then, the token has bounced back over 16% and, at the time of writing, trades at $0.00001159.

The current price reflects a slight 0.27% dip over the past 24 hours, indicating ongoing volatility but also strong underlying interest.

A key indicator reinforcing the rebound is the Moving Average Convergence Divergence (MACD), widely used to identify trend shifts. SHIB’s MACD line has crossed above the signal line for the first time in 39 days.

This crossover is often interpreted as a bullish signal and could attract renewed speculative buying.

The MACD's move higher comes as trading volumes show modest recovery, suggesting a shift in sentiment even if sustained momentum has yet to take full hold.

Traders are now watching whether this signal marks the beginning of a broader uptrend, or if resistance will cap gains once again.

CMF index climbs as capital returns

Another indicator showing potential accumulation is the Chaikin Money Flow (CMF), which measures capital inflow versus outflow. SHIB’s CMF has climbed to 0.15 and continues to rise, indicating increased buying pressure.

This suggests that traders are gradually re-entering the market and accumulating positions at perceived bargain levels.

Positive CMF readings typically occur when a token sees higher closing prices alongside greater volume.

In Shiba Inu’s case, this shift could reflect growing expectations that the coin may stabilise or climb further, especially if risk-on appetite in crypto markets continues to build through July.

Combined with the MACD crossover, this uptick in CMF supports a short-term bullish outlook, although the token’s sensitivity to external events remains high.

Short-term price target at $0.00001362

If momentum continues and key technical levels are broken, Shiba Inu may attempt to retest $0.00001362, which would represent a 17% gain from the current price of $0.00001159.

This level has emerged as a near-term resistance zone based on prior market structure.

However, the market remains fragile. A shift back to risk-off sentiment, triggered by macroeconomic uncertainty or renewed geopolitical stress, could quickly reverse the trend.

In that scenario, SHIB may fall back toward the $0.00001004 support zone, where buyers had previously stepped in.

Traders are watching for signs of sustained volume and capital inflows to confirm any breakout above resistance.

Performance hinges on sentiment into July

As July begins, SHIB’s performance will largely depend on whether buyers maintain conviction or rotate out into other assets.

So far, indicators are tilting positive, but the recent 0.27% dip in the last 24 hours shows that traders remain cautious.

The MACD crossover and rising CMF offer a technical basis for optimism, but any price recovery must be backed by consistent volume and favourable market conditions.

For now, SHIB remains in a consolidation phase, with eyes on a breakout or reversal depending on how the next few sessions unfold.