Shiba Inu (SHIB) is Back in the Spotlight, Outperforming the Memecoin Sector

After shaking up the market with an impressive surge earlier in the year, Shiba Inu (SHIB) is back in the spotlight with a performance that shows technical strength

Shiba Inu (CRYPTO: SHIB) was trading in the green on Wednesday evening, despite a brief pullback that saw the memecoin drop 3.6% in 24-hour trading. The move came as Trump Coin (CRYPTO: TRUMP) faced volatility following a large investment.

A Chinese tech firm’s $300 million purchase of a stake in Trump Coin sparked chatter about potential political or regulatory pressure on the firm, which also has ties to TikTok investors. The firm now holds nearly 11% of Trump Coin, which is valued at $2.7 billion.

Despite the crypto market downturn and Trump Coin’s volatility, SHIB showed resilience, maintaining a 25% weekly gain as it closed the trading session strong.

Compared to Shiba Inu’s gains, nine of the top 10 memecoins experienced price declines. Dogecoin (CRYPTO: DOGE) fell by 2.4%, and BONK slid by 3.5%. The total market capitalization of the memecoin sector decreased to $78.6 billion, showing a 0.7% decline over the last 24 hours.

However, the most significant shift was observed in the mid-cap coins, especially those not linked to US political figures. Among the top 10 meme assets, Pudgy Penguins (CRYPTO: PENGU) was the only one to register gains, surging 8%.

Shiba Inu Price Action:

Shiba Inu has been trading in a consolidation pattern above the $0.000015 level, with the price currently ranging at $0.00001562 on Thursday. This movement is seen to be forming a bullish continuation pattern, after previously shaking out weak investors (weak hands) at the beginning of the week.

SHIB’s price action is seen rallying above the dynamic support of the Donchian Channel midline at $0.00001498, with candles printing higher lows, despite lower trading volume. This indicates that traders would rather hold on than exit the market, anticipating a potential breakout towards the upper limit of the Donchian Channel at $0.00001765.

Meanwhile, the Klinger Oscillator indicator showed a narrowing divergence between the fast line (blue) and the signal line (green), standing at 5.27 billion and 89.18 billion, respectively. This signals that the bearish momentum is starting to weaken.

Another technical indicator, Parabolic SAR, is still printing dots below the current price structure at $0.00001435, which is a classic signal of an active uptrend.

The current price correction is taking place with low volume and without major selling pressure (no big red candles), which could be interpreted as a sign of distribution exhaustion, not a new sell-off.

If buyers are able to push the price through $0.00001600 accompanied by increased volume, then the next resistance is at $0.00001765.

However, if the $0.00001498 support fails to hold, then the $0.00001435 area of the Parabolic SAR becomes the last stronghold before a potential deeper correction to $0.00001230, which is the lower limit of the Donchian Channel.

As of now, the price structure, indicator direction, and weakening selling pressure still suggest that the path of least resistance is upwards.

Shiba Inu Price Chart:

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Shiba Inu's technicals are looking strong as it trades above a key level and shows no signs of slowing down. Despite a 3.6% price correction on Wednesday, SHIB managed to maintain its gains.

Shiba Inu Remains Resilient Amid $300 Million Trump Coin VolatilityShiba Inu (SHIB) price above key level $0.000015. Credit: Benzinga

Shiba Inu (SHIB) managed to hold above the $0.000015 level on Wednesday (14/5), despite falling 3.6% intraday, following the turmoil in the memecoin market due to a large cash injection into Trump Coin (TRUMP).

A $300 million buyout by a Chinese tech company sparked widespread concerns in the market regarding potential political and regulatory pressure. The company, which is said to have ties to TikTok stakeholders, will now control nearly 11% of Trump Coin, which has a market capitalization of $2.7 billion.

This development comes as Trump Coin has experienced significant volatility in recent times. Earlier this year, the memecoin witnessed a surge of over 700%, which was fueled by retail investors rallying behind the former U.S. President