Shiba Inu (SHIB) finds itself at a critical juncture as its price action hangs in the balance. Our previous analysis of SHIB highlighted two significant chart patterns on the 1-week chart that could determine the cryptocurrency’s future. One is a bullish triple bottom, indicating the end of SHIB’s two-year downtrend, while the other is a bearish descending triangle, which has been forming for over 13 months.
Currently, the bulls seem to have the upper hand. SHIB is trading at $0.00000741 and managed to close above the crucial support line of $0.00000715 on Sunday evening. This successful defense against the bears’ attack suggests that SHIB may be targeting a rise towards the descending triangle resistance line.
The possibility of the triple bottom pattern validating itself as a bullish signal remains, as this pattern is characterized by three lows at approximately the same level, rebounding from a support level and eventually breaking out above resistance.
However, the bulls are not entirely out of danger. If the SHIB price falls below the $0.00000715 support level, it could confirm the descending triangle pattern and potentially push SHIB further towards its year-to-date low of $0.000006. Should this level be breached, SHIB could enter uncharted territory and face the grim possibility of setting a new all-time low.
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Looking at key resistances on the way up, they include $0.00000880 (23.6% Fibonacci), the descending triangle trendline at around $0.0000095, and subsequent levels such as $0.00001, $0.00001053 (38.6% Fibonacci), $0.00001193 (50% Fibonacci), and $0.00001332 (61.8% Fibonacci). Additionally, the August 2022 high at $0.00001784 could prove to be an extremely important resistance level.
Turning to the 4-hour chart, the shorter timeframes reveal that the bulls are not yet secure. SHIB is currently stuck in a trading range between $0.00000688 (78.6% Fibonacci) and $0.00000797 (61.8% Fibonacci). The RSI briefly fell into oversold territory (below 30) on September 11 but has since risen to 42. However, sentiment remains subdued, suggesting caution.
To generate fresh bullish momentum, SHIB price urgently needs to break above the 20-day EMA at $0.00000759 on the daily close. This move would bring the resistance at the 61.8% Fibonacci retracement level ($0.00000797) into focus. A successful breach of this resistance would serve as a bullish confirmation in the shorter time frames.
Subsequent price targets would include the 50% Fibonacci retracement at $0.00000873, the 200-day EMA at $0.00000897, the 38.2% Fibonacci retracement at $0.00000949, and the 23.6% Fibonacci retracement at $0.00001043. Should SHIB sustain this positive momentum, it could eventually reach the yearly high at $0.00001596, representing a 60% rally for Shiba Inu buyers at the current price.
In conclusion, the current price action for Shiba Inu (SHIB) is crucial in determining its future trajectory. While the bullish triple bottom pattern provides hope for a reversal in the two-year downtrend, the bearish descending triangle pattern poses a significant threat. The price level of $0.00000715 remains a critical support level to watch, with subsequent resistances at various Fibonacci retracement levels. Traders and investors in SHIB must monitor these key levels and patterns closely to navigate the cryptocurrency’s future path successfully.
