Shiba Inu Near Key Levels: Is the Bullish Trend Back?

A developing double-bottom formation on Shiba Inu’s (SHIB) daily chart hints at a potential bullish reversal. This traditional pattern, often associated with a shift in market trends, could serve as the long-awaited catalyst for SHIB investors.

Stabilizing After a Long Decline

SHIB has stabilized after a prolonged downtrend and is trading around $0.00002177. It currently tests a critical support level at $0.00002105, near the 100-day Exponential Moving Average (EMA). This level has held firm over the past few trading sessions, offering hope for a recovery.

However, if this support fails, SHIB could retest the 200-day EMA near $0.00002054. For SHIB to reverse its negative momentum, it must break through crucial resistance levels. The first major hurdle lies at the 50-day EMA, approximately $0.00002350.

_{Source: CoinMarketCap}

Beyond that, a stronger resistance zone emerges at $0.00002585. Clearing these levels could pave the way for a 50% rally, potentially pushing SHIB back to its recent highs of around $0.00003500.

Volume Remains a Challenge

Despite the promising technical setup, volume remains a critical factor. Low buying pressure raises doubts about whether bulls have enough momentum to overcome resistance levels. A significant increase in trading volume is essential to validate the double-bottom pattern and initiate a long-term recovery.

Investors should closely monitor price movements. A decisive move above $0.00002350 would confirm the bullish pattern and signal a potential reversal. On the other hand, a drop below $0.00002105 could invalidate the setup and suggest further weakness in SHIB’s price.

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The double-bottom pattern offers a glimmer of hope for Shiba Inu’s recovery, with the potential for a 50% rally if key resistance levels are cleared. However, traders should proceed cautiously, keeping a close eye on volume and price action to confirm the bullish outlook.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.