- Shiba Inu (SHIB) is consolidating above key support levels, with a bullish pennant formation suggesting a potential breakout if it surpasses the 0.5 Fibonacci retracement level at $0.00002211.
- A breakout could drive SHIB higher to key resistance levels, while failure to maintain support may lead to further downside.
Shiba Inu (SHIB) is showing signs of potential bullish reversal as it consolidates above key support levels, with technical patterns hinting at an imminent breakout. Here’s a breakdown of the current situation and what traders can expect from the cryptocurrency in the near future.
SHIB’s Corrective Decline Nearing Completion
After reaching a high of $0.000033 on December 7, Shiba Inu underwent a sharp corrective decline, losing nearly 48% of its value. The price has since been consolidating above the 0.786 Fibonacci retracement level at $0.00001745, suggesting that the corrective wave might be near its end. The daily chart shows a clear ABC structure, signaling the completion of wave (C), which could set the stage for a potential bullish reversal.
Bullish Pennant Formation on the Horizon
Shiba Inu’s lower time frame chart reveals the formation of a bullish pennant, a technical pattern that often leads to significant price volatility. The RSI is hovering near oversold conditions, signaling that the bearish momentum may be weakening. If SHIB manages to break above the 0.5 Fibonacci level at $0.00002211, it could confirm a reversal and trigger a new rally.
Price Targets and Resistance Levels
A breakout from the current consolidation could push SHIB higher, with Fibonacci extensions indicating key price targets at $0.00002470 (0.382 Fib level) and $0.00002790 (0.236 Fib level). These levels align with previous resistance points and may serve as obstacles for SHIB as it looks to continue its upward movement. On the other hand, failure to break above these levels could lead to a retest of lower support zones.
Key Levels to Watch
- Immediate Resistance: $0.00002211 (0.5 Fibonacci retracement)
- Key Resistance: $0.00002470 (0.382 Fibonacci retracement)
- Major Resistance: $0.00002790 (0.236 Fibonacci retracement)
- Immediate Support: $0.00001952 (0.618 Fibonacci retracement)
- Critical Support: $0.00001584 (0.786 Fibonacci retracement)
What’s Next for SHIB?
The next few days are crucial for Shiba Inu’s price action. A breakout above $0.00002211 would confirm the start of a bullish wave, targeting $0.00002470 and beyond. However, if SHIB loses support at $0.00001952, a decline to $0.00001584 may be in the cards, signaling continued weakness.
With the potential for significant price movement, SHIB traders should closely monitor volume and breakout confirmation, as these factors will dictate whether SHIB embarks on a new bullish phase or continues its downward trend.