- SHIB: Rallied 28% recently but faced resistance near $0.0000096.
- Market Influence: BTC correction and ETF inflows impacted SHIB’s price movements.
- Future Outlook: Breakout depends on Bitcoin surpassing $94,000 and increased market confidence.
Shiba Inu caught many traders’ attention after a strong price rally on January 5, 2025. The memecoin jumped to $0.00000969, showing renewed momentum. However, gains quickly met resistance, leading to a minor correction. Despite this, SHIB remains up 28% over the past 14 days and shows steady weekly and monthly growth. Investors are now asking whether the rally has more room or if another dip could follow.
Why Shiba Inu Faces Resistance
The recent rally in Shiba Inu coincided with a broader crypto market upswing. Bitcoin (BTC) reached nearly $94,000 on January 6 before sliding back to $92,000. This correction likely influenced SHIB, causing rejection near the $0.0000096 mark. SHIB often mirrors BTC trends, so market movements in the top cryptocurrency strongly impact memecoin prices.
Other factors also contributed to the rally. Inflows from ETFs linked to Bitcoin, Ethereum (ETH), and XRP have increased overall market activity. These funds encourage traders to buy popular altcoins, including SHIB. Despite the rally, the market remains fragile following last year’s crash. Investors continue to approach high-risk assets cautiously, which limits the scale of inflows into memecoins.
Shiba Inu carries higher risk compared with mainstream cryptocurrencies. Its price volatility can be extreme, making significant investments risky. As a result, even after a 28% surge, many investors remain hesitant. The market could continue sideways if macroeconomic uncertainty persists. Poor economic conditions may further slow inflows into speculative assets like SHIB.
What Could Trigger Another Rally?
Shiba Inu has the potential to rebound if Bitcoin breaks past the $94,000 resistance level. A BTC recovery would likely boost confidence in altcoins, including SHIB. ETF inflows could amplify this effect, providing more liquidity and increasing buying pressure across the market.Analysts suggest that if this scenario unfolds, SHIB could regain substantial ground. Some predict a price movement strong enough to remove a zero from the memecoin’s value, reversing losses from last year’s crash.
Traders will likely watch BTC’s performance closely, since Shiba Inu often follows its lead.While waiting for BTC to confirm a breakout, SHIB could experience short-term consolidation. The memecoin may continue moving sideways with minor fluctuations. Investors should consider the current macroeconomic climate, which remains uncertain, before making aggressive moves. Risk management remains crucial for speculative assets like Shiba Inu.
Overall, Shiba Inu’s recent 28% rally shows that interest in the memecoin has not faded. Resistance around $0.0000096 highlights the challenges ahead. Watching Bitcoin’s trajectory, ETF inflows, and broader market sentiment will provide clues for SHIB’s next move. A breakthrough could set the stage for further gains, while failure may lead to a period of consolidation.
