With meme coins in freefall, Shiba Inu approaches critical support. Can it maintain this level and break the falling channel pattern?
With Bitcoin dipping below $80,000, the market capitalization of meme coins has dwindled to $44 billion. In this bearish market, Shiba Inu has faced nearly a 9% decline in the past week, while Dogecoin has experienced an 18% drop.
Currently, Shiba Inu is showing a lower price rejection from the key psychological level of $0.000010. Could this hint at the onset of a bullish rally?
Shiba Inu Primed for Bullish Reversal?
On the daily chart, Shiba Inu’s price trend has witnessed a significant pullback of 65% from a recent swing high at $0.00003285, forming a falling channel pattern.
Within this channel, the price of Shiba Inu is nearing the local support trendline, reportedly reaching a 24-hour low of $0.00001082.
Following the price rejection, a long-tail candle pushed the market price to $0.00001163, suggesting a possible bullish reversal within the channel pattern.
Shiba Inu Price Chart
The daily RSI demonstrates strong divergence, reinforcing the likelihood of a bullish rebound. Despite the price continuing to decline, the RSI remains above the oversold boundary, indicating an increased chance of a recovery.
On-Chain Indicators Signal Resistance Ahead
According to IntoTheBlock’s Global In/Out of Money Indicator, Shiba Inu is positioned within the price range of $0.00001 to $0.000012. The immediate support zone stretches from $0.000008 to $0.000011, where approximately 41.12 trillion SHIB tokens are held across nearly 198,000 addresses.
As Shiba Inu approaches this vital psychological level, recovery potential increases. However, the immediate resistance range, from $0.000012 to $0.000014, holds around 25.66 trillion SHIB tokens among about 60,000 addresses.
This supply zone is easier to surpass than the subsequent zone, which contains nearly 550 trillion SHIB tokens across 165,000 addresses between the price bands of $0.000014 and $0.000019.
Shiba Inu (SHIB) Price Targets
Based on the Pivot Level Indicator, the recent bounce in the intraday candle took place just above the S-1 Pivot Support Level at $0.00001061.
If a bounce back occurs within the channel pattern, bulls are likely to challenge the upper trendline at $0.000013. Should the channel break out, immediate resistance will be met at the center pivot line, valued at $0.00001493.
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