Shiba Inu (SHIB) prices are entering what could potentially be the most important week in a year and a half. As explained in the previous analysis, SHIB showed conflicting patterns on the weekly chart: a bullish quadruple bottom and a bearish triangle.
Things may resolve this week and bullish chart patterns may be validated. At press time, SHIB was trading at $0.00000933. Therefore, the Shiba Inu price has crossed the downward trend line of the triangle pattern.
Why SHIB enters its most important week in a year and a half
The quadruple bottom pattern was formed over a long period of 1.5 years, with the price touching the support zone between $0.00000715 and $0.000006 four times, forming a very strong base. SHIB has consistently rebounded from this price range over the past 18 months, suggesting a strong support level and reluctance to move lower.
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A descending triangle featuring a flat lower support line at $0.00000715 and a downward upper resistance trend line acted as strong resistance. Since last year, the price has been rejected at the resistance level a total of 10 times. As the price moves above this trend line, a weekly close above this line could signal the start of a bullish reversal.
Moreover, the 50-week exponential moving average (EMA – orange line) also played an important role. In cases where SHIB has been able to break above the triangle’s descending trend line (lower time frame), it has failed to close the week above this indicator.
This week the SHIB bulls got a new opportunity. SHIB is already trading above the triangular descending trendline, but the price should still close above the 50-week EMA at $0.00000973 next Sunday. If successful, this would be an unprecedented and extremely optimistic signal.
Finally, a break above the psychologically important level of $0.00001 could be the final hurdle for a strong uptrend. A breakout of this nature can lead to a change in market sentiment and has the potential to result in a significant price spike.
In particular, caution is needed as trading volume has not yet shown the abnormal surge that typically accompanies a breakout. However, the weekly RSI is 57.36, indicating that the asset is neither overbought nor oversold and has room for potential upside if a breakout is confirmed.
Short-term and long-term Shiba Inu price targets
Looking at the Fibonacci levels, the key future price targets to watch after a successful breakout are the 0.382 and 0.5 Fibonacci levels, which are $0.00001051 and $0.00001190, respectively. These levels will be SHIB’s near-term targets and could potentially act as resistance points if an upward trend occurs.
The next important price levels in the medium term are the 0.618 Fibonacci level at $0.00001329, the 0.786 Fibonacci level at $0.00001527 and the August 2022 high at $0.00001780. However, traders can also expect notable resistance at $0.000017, which has served as important support and resistance in the past.
In the long term, the 1.618 Fibonacci extension level at $0.00002509 and the 2.618 Fibonacci extension level at $0.00003690 are noteworthy price targets.
In conclusion, the closing price during the week is firmly capturing the market’s attention. If the price of SHIB holds above the downtrend line, it will be an important technical pivot point, with the top of the quadruple bottom support line and breakout of the descending triangle likely to fuel a bullish wave.
Featured image from Shutterstock, chart from TradingView.com