Despite a 6% drop over the past week, the weekly chart for Shiba Inu (SHIB) reveals signs of a potential recovery. Turbulence and market volatility continue to influence SHIB's price, which currently stands at $0.00002126. This decline is accompanied by a drop in market capitalization to $12.49 billion and a decrease in 24-hour trading volume to $557.59 million.
However, the weekly chart indicates that SHIB might be on the verge of a rally, supported by bullish patterns that typically precede upward price movements.
Patterns Suggesting Growth: Ascending Triangle and Cup-and-Handle
Ascending Triangle:
One bullish pattern is the ascending triangle, characterized by a horizontal resistance line and an upward sloping support trendline. This formation reflects growing interest from buyers pushing SHIB toward higher lows. Currently, the price is near the lower boundary of the triangle, a critical support zone where buyers may step in.
A breakout above this formation could trigger a rally toward $0.000040, aligning with the 1.272 Fibonacci extension. If the bullish momentum continues, the price could even target $0.000047, which corresponds to the 1.618 Fibonacci extension.
Cup-and-Handle:
Another key pattern is the "cup-and-handle," which often signals upcoming upward momentum. The "cup" forms a rounded base, while the "handle" represents a consolidation phase before a breakout. SHIB is currently consolidating within the handle phase, indicating that the token is gathering energy for its next move.
If SHIB breaks out from this pattern, it could see gains of up to 67%, pushing the price to $0.000056, in line with the 2.0 Fibonacci extension. However, to complete the handle formation, SHIB first needs to reclaim the $0.000032 level.
Downside Risks: What Happens in a Bearish Scenario?
Should bearish sentiment prevail, SHIB could break below the ascending triangle's support, targeting $0.000016 as a probable safety net. A further breakdown below this zone could lead to prices falling into the $0.000013–$0.000010 range, which serves as an accumulation zone. Here, buyers might step in to prepare for a potential recovery.
Technical Indicators Point to Consolidation
SHIB's technical indicators reinforce the current market consolidation:
Relative Strength Index (RSI): The RSI currently stands at 49.99, indicating a neutral market stance, where SHIB is neither overbought nor oversold. However, the recent decline in RSI from overbought levels suggests a slight bearish tone as sellers try to gain control.
MACD (Moving Average Convergence Divergence): The MACD line at 0.000001718 is slightly below the signal line at 0.000001805, reflecting weakening bullish momentum. The shrinking histogram further underscores market stabilization near the zero line while awaiting a decisive move.
Conclusion: Calm Before the Storm?
Despite the recent decline, SHIB’s price exhibits signs of a potential turnaround thanks to bullish patterns visible on the weekly chart. Whether the market opts for an upward breakout or a further decline, investors should closely monitor key support and resistance levels. Once a decisive move occurs, SHIB could either embark on a strong rally or continue its decline toward accumulation zones.
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