Shiba Inu (SHIB) has displayed a rare technical pattern on its weekly chart, suggesting that the cryptocurrency could be set for a significant price shift. Analysts have observed what they describe as a “bullish combo,” indicating that long-term selling pressure has eased while a local price reversal is underway.
Technical divergence signals seller exhaustion
Currently, SHIB trades near a local low at $0.00000547 after recording a weekly gain of 6.72%. While the price has reached new lows in recent months, the Relative Strength Index (RSI) has shown higher lows on the weekly chart. This divergence between price direction and the oscillator is considered a classic sign that selling momentum has diminished.
Mini dictionary: Relative Strength Index (RSI), a momentum oscillator that measures the speed and change of price movements to evaluate potential overbought or oversold conditions.
The presence of a bullish RSI divergence has served as evidence that the sustained downward trend is losing steam. In technical analysis, this often marks a turning point for an asset, leading traders to anticipate a potential reversal.
Support levels and possible breakout scenarios
On the chart, two drivers have emerged: persistent higher lows in the RSI and the ability of buyers to create a support zone around current price levels. This stabilization has helped to reduce short-term downside risks and halt severe bearish momentum.
Additionally, Shiba Inu appears to be using short-term moving averages as foundational support. Historically, a divergence like this—when indicators strengthen while prices stay low—can be an early sign of a breakout from a lengthier decline.
Such divergence between price and indicator trends is often seen before rapid upward price moves, especially as moving averages and key support levels establish a base for accumulation.
Key resistance and outlook for SHIB
Despite the positive technical signals, analysts caution that deleting a zero from SHIB’s price will not be straightforward. The most significant resistance sits at $0.0000122, aligned with the 200-week moving average. This level represents not only a major technical barrier but also a psychological threshold that traders watch closely.
Mini dictionary: 200-week moving average (MA), a long-term indicator used by technical analysts to assess the average closing price of an asset over the past 200 weeks, serving as a primary trend and support/resistance guide.
A decisive break above this resistance is needed for SHIB to sustain gains and move into the $0.00001 zone or higher. Past attempts to breach comparable moving averages have led to notable price corrections, highlighting the challenge for bulls.
| Support/Resistance | Level | Indicator |
|---|---|---|
| Local support | $0.00000547 | Short-term MA, RSI |
| Major resistance | $0.0000122 | 200-week MA |
Whether SHIB can erase another zero depends on buyers’ ability to maintain current momentum and achieve a breakout at $0.0000122. Without this, any upward move may prove temporary, with the risk of further correction if the resistance holds.
A confirmed breakout through the 200-week moving average could validate the bullish setup, while failure to do so might leave the current rally as just a short-term bounce.
