In the midst of its first bear market, Shiba Inu (SHIB), one of the largest memecoins, is posing an increasing risk for investors. Anticipations for a significant price movement are brewing, but what should Shiba Coin investors pay attention to? What story do the current data tell us? Here’s an analysis.
350 Days of Shiba Movement
Shiba Inu’s (SHIB) price has finally reached the support line of a long-term formation after 350 days of movement. The market’s reaction at this point—whether it be a bounce or a breakdown—will determine the future trajectory. If the price breaks downward, the entire structure that has been in place for nearly a year will be invalidated, indicating the commencement of a larger downtrend. However, a price bounce would likely lead to a rise to the triangle’s resistance line.
According to the daily chart, Shiba Coin’s price has been trading within a symmetrical triangle for the past 350 days. This specific formation is considered neutral. A breakout at either the support or resistance area is expected to provide price momentum.
On May 8, SHIB’s price bounced at the triangle’s support line, a level untouched since the beginning of the year. However, the price has yet to trigger a significant increase. The RSI is below 50 and declining, yet it has also entered the oversold region. The last time this occurred, an upward move began. Will history repeat itself? Only time will tell.
Shiba Coin Review
The shorter timeframe reveals that the price has been falling within a declining parallel channel since April 16. These channels are typically considered bullish formations, often ending with price breakouts. Once again, on May 8, the price rebounded at the formation’s support line, forming a long lower wick. The RSI on the short-term chart also indicates a potential bounce soon.
An upward breakout from the declining channel could set Shiba Coin on a run towards the $0.0000130 target. However, if the price falls below the triangle formation’s support line, it could progress towards a $0.0000057 low, a level last seen by Shiba Coin investors in June 2021.
In conclusion, Bitcoin has yet to establish a direction. Most altcoins, like Shiba Coin, appear on the brink of “big moves,” and the imminent breakout on the BTC front is eagerly awaited.
