Shiba Inu is down around 7% today, but this shouldn’t worry SHIB holders too much considering the broader crypto market is facing a correction. In fact, Bitcoin plunged from the $72k-$72.5k range to below $70k.
This, of course, brought a lot of altcoins down, along with SHIB.
Shiba Inu Chart Analysis
SHIB is currently trading about 80% below its 2021 all-time high, showing a notable falling wedge pattern between early and mid-2024. This pattern, formed by converging downward-sloping trendlines, typically signals a potential bullish reversal. While SHIB did break out of this wedge in late Q2 or early Q3 2024, it has since moved sideways rather than showing significant upward momentum.
The 200-day moving average, currently at $0.00001854, sits slightly above the current price and acts as a key resistance level. SHIB’s inability to maintain its position above this line after the breakout suggests ongoing downward pressure. The RSI on the 4-hour chart reads around 53.4, indicating neutral market conditions – neither overbought nor oversold.
Source: TradingView Support, Resistance, and SHIB Price Predictions
Key support for SHIB lies around $0.00001500, a level that proved resilient during August-September 2024. The immediate resistance sits near the 200-day MA at $0.00001854, with another significant barrier at $0.00002000. Breaking above these levels could pave the way for further gains.
In a bullish scenario, watch for the RSI dropping into oversold territory while price approaches the $0.00001500 support – this combination often attracts buyers looking for a bounce. A break above the 200-day MA could confirm bullish momentum, potentially pushing SHIB toward $0.00002000 and $0.00002500.
However, if SHIB fails to hold the $0.00001500 support level, especially with a neutral or declining RSI, we might see continued downward movement. In this case, the next significant support would be around $0.00001000, which could serve as a bottom in a prolonged bearish scenario.
Read also: Bitcoin Price Dips, But Analyst Optimistic – Here’s Why $78k is Next
The current sideways movement after the wedge breakout suggests SHIB is in a consolidation phase. Such phases often precede significant price movements, making the next substantial move crucial for determining the longer-term trend.
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