Shiba Inu (SHIB) investors are closely watching the cryptocurrency’s recent price movements, hoping for signs of a potential trend reversal. Over the past few days, SHIB has displayed some encouraging technical patterns that hint at a possible bullish turnaround.
The SHIB trading at a price of $0.000007 recently rebounded from the support trendline of a falling wedge pattern, a classic bullish reversal formation. This recovery, coupled with an 8.5% surge over the last five days, propelled by a morning star pattern, has sparked optimism among traders.
Despite increased buying pressure in the overall crypto market, partly fueled by rumours of the SEC approving a spot Bitcoin ETF around October 16, SHIB has struggled to breach the upper trendline of its falling wedge pattern. This resistance has led to concerns of a potential bearish reversal, with a potential downside target of approximately 6%, revisiting the lower trendline at around $0.0000064.
However, it’s important not to dismiss the longer-term potential for a trend reversal. Falling wedges often emerge at the end of a corrective phase, indicating the possibility of a significant shift in direction. As SHIB approaches the apex of the wedge, there’s anticipation that buyers may eventually break the upper trendline, signaling the start of a new bullish phase.
A breakout above this level, confirmed by a daily candle close, could pave the way for higher price levels at $0.0000076, followed by $0.00000845 and $0.00000876. These are key resistance levels that SHIB enthusiasts are closely monitoring, hoping for a sustained comeback.
Nevertheless, SHIB faces several challenges in its path to recovery. It currently trades below critical price thresholds, including the 50-day Exponential Moving Average (EMA) at $0.00000702 . These moving average provide crucial insights into both short-term and long-term trends, and their current positions highlight the uphill battle SHIB faces.
Additionally, the Commodity Channel Index (CCI) for SHIB on the daily timeframe is at -24.72, signaling the ongoing downtrend. However, recent attempts by SHIB to test the resistance level at the 21-day EMA, currently at $0.00000711, offer a glimmer of hope. A successful breach of this EMA could indicate a potential trend reversal, injecting fresh optimism into SHIB’s price prospects.
While SHIB continues to face obstacles in its recovery journey, the technical patterns and resistance levels provide both challenges and opportunities for traders and investors to watch closely. The crypto market remains dynamic, and SHIB’s ability to break free from its recent downtrend remains a focal point for many in the cryptocurrency community.
