With meme coins on a freefall, Shiba Inu nears critical support. Will it hold this level and bounce back to break the falling channel pattern?
With Bitcoin dipping below $80,000, the market capitalization of meme coins has dropped to $44 billion. In this declining market, Shiba Inu has experienced nearly a 9% fall in the past 7 days. At the same time, Dogecoin has dropped by 18%.
Currently, Shiba Inu is showing a lower price rejection from the crucial psychological level of $0.000010. Could this rejection mark the start of a bullish rally?
Shiba Inu Ready For Bullish Reversal Within A Channel?
On the daily chart, Shiba Inu’s price trend has seen a massive pullback of 65% from a recent swing high at $0.00003285. This decline has taken the form of a falling channel pattern.
Within the channel, Shiba Inu’s price is approaching the local support trendline. The current intraday candle shows a 24-hour low of $0.00001082.
With the lower price rejection, the long-tail candle has pushed the market price to $0.00001163. This suggests that Shiba Inu may be signaling a potential bullish reversal within the channel pattern.
The daily RSI shows strong divergence, supporting the likelihood of a bullish resurgence. As Shiba Inu’s price continues to decline, the RSI remains above the oversold boundary, increasing the chances of a bounce back.
On-Chain Indicators Show Strong Resistance Ahead
According to the Global In/Out of Money Indicator by IntoTheBlock, Shiba Inu is within the price range of $0.00001 to $0.000012. The immediate support zone extends from $0.000008 to $0.000011, where 41.12 trillion SHIB tokens are held across nearly 198,000 addresses.
As Shiba Inu approaches this crucial psychological level, the potential for recovery is higher. However, the immediate resistance zone, stretching from $0.000012 to $0.000014, holds 25.66 trillion SHIB tokens across about 60,000 addresses.
This supply zone is easier to overcome than the next zone, which holds 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 occurred just before the S-1 Pivot Support Level, which is at $0.00001061.
With the possibility of a bounce back within the channel pattern, bulls are likely to challenge the overhead trendline at $0.000013. If the channel breaks out, the immediate resistance will be at the center pivot line, priced at $0.00001493.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
