Analyzing why Shiba Inu crypto’s latest breakout is somewhat subdued

The memecoin market has gained by 5% over the week, compared to Bitcoin’s [BTC] 1.40% and Ethereum’s [ETH] 2.04%. Layer 2 tokens have performed the best though, with 20.7% gains over the same time period.

Dogecoin [DOGE] often sets the direction for the memecoin sector. At press time, it was up 4.50% in 24 hours and up 2.03% over the last 7 days.

What about SHIB though? Well, Shiba Inu [SHIB] has performed slightly better than DOGE. As the second-largest memecoin by market cap, SHIB was up 5.78% in a day and 6.37% in a week.

Hence, the question: How will the memecoin trend for the rest of September?

Shiba Inu’s downtrend might be weakening

On the 1-day chart, the swift decline from May to July marked a bearish swing move for Shiba Inu. Since then, the token has picked up some bullish momentum though.

In recent weeks, the MFI has hovered around neutral-50 for the most part. All while the CMF climbed above +0.05 in late August and early September to show sizeable capital inflows.

The technical indicators showed a potential short-term uptrend, but there’s another reason why swing traders need to be prepared for a bullish trend shift in the higher timeframes.

SHIB tested the 78.6% Fibonacci retracement level at $0.00000613 in August and faced rejection. Since then, the memecoin has defended the $0.00000495 support level twice.