Shiba Inu Holds Monthly Support as Oversold Bounce Develops
Shiba Inu price action has stabilized after an impulsive sell-off pushed price into deeply oversold territory. The recent downside move briefly drove SHIB below a key monthly support level, but price has since reclaimed this zone and confirmed it with a bullish retest. This behavior often signals seller exhaustion rather than a sustained breakdown.
Following the reclaim, SHIB is now consolidating around the value area low of the prior trading range. This area represents the lower boundary of fair value and is a critical level for continuation. As long as price continues to hold above this region on a closing basis, it supports the idea that buyers are absorbing supply and defending the reclaimed support.
From a momentum perspective, oversold conditions that developed during the sell-off are beginning to ease. This typically allows room for a relief rally, especially when combined with a successful support reclaim. While this does not yet confirm a full trend reversal, it does increase the probability of a rotational move higher.
If bullish volume continues to build, the next upside objective sits near the value area high, where prior resistance is expected. Failure to hold above current support would weaken the setup, but for now, structure favors stabilization and short-term upside potential.
