Shiba Inu (SHIB) has faced considerable challenges, trading near its weekly and monthly lows. While the overall market sentiment remains cautious, recent price action and technical indicators suggest a potential shift in momentum.
Technical Analysis
Analyst Spetsnaz has outlined a straightforward trading strategy for Shiba Inu. The core focus is a potential breakout above a descending trendline that has dominated SHIBâs price movement since June.
A successful breach of this trendline could signal a bullish reversal, presenting a favorable entry point for long positions. Conversely, a failure to break this resistance would likely extend the downtrend.
The price chart exhibits a clear pattern of lower highs and lower lows, reinforcing the bearish dominance of the descending trendline. However, SHIB is currently testing this resistance, a critical juncture that will determine the subsequent market direction.
Key support levels are at $0.00001073 and $0.00000879, with a secondary level at $0.00000848. On the other hand, immediate resistance lies at $0.00001375. A successful breakout above the trendline could propel the price toward higher resistance targets at $0.00002315 and $0.00002572.
Market Sentiment and Investor Behavior
Data from IntoTheBlock reveals that most SHIB holders are currently âout of the money,â particularly those who acquired the token at higher price levels. This suggests potential selling pressure if the price remains subdued. The concentration of these holders at specific price points could act as resistance levels, potentially exacerbating downward pressure.
Analyst Predictions
In addition to Spetsnazâs analysis, other market experts have offered insights into Shiba Inuâs potential trajectory. MMBTtrader on TradingView suggests a brewing upward movement, while Maks Klimenko identifies a possible reversal pattern following a sweep of the $0.00001333 support level. A bullish divergence in the MACD indicator further supports this optimistic outlook.
Shiba Inu is at a critical crossroads. While the prevailing trend remains bearish, a successful breakout above the descending trendline could ignite a bullish reversal. However, the presence of significant resistance levels and a large number of âout of the moneyâ holders poses challenges. Investors should closely monitor price action and technical indicators to make informed trading decisions.
â ïžDisclaimer
This content aims to enrich readers with information. Always conduct independent research and use discretionary funds before investing. All buying, selling, and crypto asset investment activities are the responsibility of the reader.
