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An attempt from Shiba Inu to recover higher prices has stalled, with the token now targeting a dip into its former descending channel.
Shiba Inu (SHIB) climbed to $0.0000078 today, showing strength even as the broader crypto market struggled to find upward momentum. However, that foray didn’t last, with the meme coin struggling around a resistance level.
Key Points
- An attempt to recover higher prices for Shiba Inu has stalled, with the token now targeting a dip into its former descending channel.
- Shiba Inu trended atop a descending channel from Friday, making lower highs and lower lows on the 15-minute timeframe until the late Sunday correction.
- The rally to $0.0000078 also saw it retest a lower-timeframe resistance level, a roadblock it has so far failed to overcome.
- A bearish price development would see Shiba Inu drop into the descending channel it has held above since January 23.
Unsustained Upward Momentum
Shiba Inu trended atop a descending channel from Friday, making lower highs and lower lows on the 15-minute timeframe until the late Sunday correction. On the day, SHIB corrected nearly 4%, dropping into the descending channel and slightly below it before recovering this week.
After hitting a low of $0.00000736 last week, SHIB rebounded to $0.0000078 before correcting to its current price. Notably, this saw it reclaim above the descending channel.
However, the rally to $0.0000078 also led to a retest of a lower-timeframe resistance level. This area had rejected Shiba Inu twice before yesterday, with highs of $0.00000781 and $0.00000799 on January 25 and 26, marking price tops.
Today, Shiba Inu has also faced opposition around this resistance and has so far failed to overcome it. This persistent supply zone and the token’s clear price weakness are fueling speculation that it could retrace to lower levels.
Price Scenarios for Shiba Inu
A bearish price development would see Shiba Inu drop into the descending channel it has held above since January 23. Notably, the wedge’s upper band stands at $0.00000756, and the lower support boundary at $0.00000741. Further declines could lead to a retest of the Sunday lows of $0.00000736.
However, a surge to break above the $0.0000078 resistance would invalidate this bearish structure. If this happens, the next major resistance area for the token lies around $0.00000815.
Caveat to Note
It bears mentioning that there is no guarantee of any outcome, as the market is rife with uncertainty. As a speculative asset, Shiba Inu largely depends on the broader trend; hence, how the crypto market reacts in the coming days will determine its direction.
So, this analysis only provides key support and resistance areas to watch when Shiba Inu makes its next move. This is neither a Shiba Inu price prediction nor financial advice.