Shiba Inu Shakes Off 11-Month Bear Cycle with New Support Level

Shiba Inu's (SHIB) price has finally broken free from its 11-month bear cycle, and it's all thanks to a new support level around $3.26 billion in market capitalization.

The token has stabilized above this level, which was initially an obstacle for the price, but is now serving as reliable support. This marks the first time since September last year that SHIB has been above its 200-day moving average.

The reasons behind this optimism are multifaceted. The entry of Shiba Inu into Japan's regulated market, thanks to a license granted by the FSA to Laser Digital, a subsidiary of Nomura, is one significant factor. Additionally, a short squeeze in the futures market has pushed the price higher, with $3.1 billion in liquidated positions.

Historically, Shiba Inu's performance has been lackluster during the end-of-summer period, but this August has delivered a 15.9% gain, its best result in five years. This has propelled the token's total third-quarter return to an impressive 30.1%.

With its current market capitalization and trading volume of $146.2 million, SHIB is poised to move past its competitors, potentially flipping Avalanche (AVAX) and Sui (SUI), if it grows by just 0.6% and less than 1.2%, respectively.