Teasing a double bottom possibility in the 4H chart, Shiba Inu prepares for a positive cycle in a falling channel. Will a reversal rally in Shiba Inu surge 40% for a breakout run?
As the meme coins suffer an intense pullback this week, the second biggest in the segment, Shiba Inu, takes a big hit. With a 20% drop in the recent bear cycle, Shiba Inu forms six consecutive bearish candles in the 1D chart.
However, the bearish run approaches critical support, which could reverse the trend polarity this weekend. With the chances of a double-bottom formation, the meme coin teases a new bull cycle this month.
Final Reversal Call for $SHIB Bulls
In the Shiba Inu daily chart, the lower high formation leads to a falling channel pattern over the weeks. Tracing the recent reversal from the overhead trendline, SHIB forms 12 out of 18 bearish candles, accounting for the 25% drop.
However, the bulls finally get a chance for a reversal rally from the crucial support level of $0.00001453. Currently, Shiba Inu forms a dragonfly doji candle with an intraday move of 0.55% and trades at $0.00001473.
The RSI line shows a bullish divergence in the last two dips at the baseline, supporting the recovery chances. Furthermore, the MACD shows a similar divergence despite the bearish crossover in action.
The bullish recovery breaking above the trendline could result in a trend reversal rally. As per the trend-based Fibonacci levels, Shiba Inu could hike up to the $0.000020 mark this month for a 40% surge.
What’s the Downside Risk for Shiba Inu?
In the weekly chart, the negative cycle approaches the support trendline of a massive triangle pattern. The ongoing correction drops under the 38.20% Fibonacci level at $0.00001610.
With a 12.50% drop this week, the downfall approaches the support trendline, increasing the downside risk. A bearish breakdown could result in a 20% price fall to the $0.000010 psychological support.
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