Shiba Inu (SHIB) has experienced a significant price rebound, surging by 16%. Despite this uptick, trading volume has remained stable at 2.039T, indicating consistent trading activity without significant fluctuations. This recovery occurred during Tuesday's London trading session, helping SHIB recoup some of the losses from the previous market downturn. The SHIB price chart appears bullish, with the asset being one of the top gainers in the market-wide recovery, demonstrating a high correlation with Bitcoin.
Can the Shiba Inu Price Rally Continue?
Currently, SHIB is in a downward trend, as indicated by the descending wedge pattern. The latest candlestick shows a small green candle following a series of red ones, suggesting a potential short-term reversal or consolidation within the descending wedge. This pattern often indicates a corrective phase that might lead to a bullish breakout, but further confirmation is needed.
According to CoinGecko data, the 50-day Exponential Moving Average (EMA) is at $0.00001734, and the 200-day EMA is at $0.0000186, both above the current price, reinforcing the overall bearish trend.
The Shiba Inu price chart indicates an immediate support level around $0.0000115, with a stronger support zone between $0.00001 and $0.000011. This area, highlighted by the grey zone, has filled the fair value gap created during yesterday's crash and represents the last zone of market imbalance for SHIB, suggesting that the dip might be over.
Key Resistance Levels
Resistance is observed around $0.00001734 (50-day EMA), followed by $0.00001860 (200-day EMA), with a major resistance zone between $0.00002500 and $0.00003000. If SHIB fails to break above the 50-day EMA, the price might drop by 41% to $0.00001135, aligning with the bottom trendline of the falling wedge and falling into the FVG zone.
Technical Indicators
Relative Strength Index (RSI): The RSI stands at 33.01, close to oversold territory, indicating a potential short-term bounce but with an overall bearish sentiment.
Chaikin Money Flow (CMF): The CMF is at -0.01, suggesting mild selling pressure.
If SHIB can break above the 50-day and 200-day EMAs, it could signal market strength and turn the asset bullish, potentially invalidating the bearish outlook. A breakout from the falling wedge might propel SHIB to $0.00002796, representing a 102% increase.
Conclusion
Shiba Inu's recent price recovery is noteworthy, but the asset faces significant resistance and overall bearish indicators. While there is potential for a bullish breakout, traders should watch key support and resistance levels closely to gauge the likelihood of sustained upward momentum.
Notice:
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