Cryptocurrency News Price Analysis

Shiba Inu Bears Attention! SHIB Price Overcomes Massive Obstacle

Jim Smith
  • SHIB price conquered a descending wedge.
  • The meme coin formed a longer-term double setup.
  • The daily and weekly Relative Strength Indexes produced bullish divergence.

Ongoing improved market mood has seen Shiba Inu price forming a bullish setup within a longer-term horizontal support barrier. Confirming this narrative might catalyze an enormous price rally. Remember, SHIB’s price has traded within a descending block since 9 November.

On 16 and 28 December, the alt rebounded from the wedge’s support level and triggered the ongoing upside movement. The bounce emerged as the Relative Strength Index printed a bullish divergence, further emphasizing its legitimacy. Further, the RSI moved beyond the 50 mark.

On 10 January, Shiba Inu’s price overpowered the wedge. Meantime it has hit the $0.00000968 maximum price. Continuing the upside movement would push the alt towards the nearest resistance zone at $0.00000106, formed by the 38.2% Fibonacci retracement resistance.

Meanwhile, a decline beneath the wedge’s resistance level would mean the breakout wasn’t legitimate, welcoming the chances of new lows.

Double Bottom Triggering Rallies?

The weekly timeframe mimics the 24hr one, presenting a bullish picture. Two reasons explain this; firstly, SHIB’s price has formed a double bottom –  a bullish setup. The double bottom happened within the longer-term support at $0.0000083, authorizing its legitimacy.

Secondly, a weekly RSI bullish divergence accompanied the double bottom. Remember, divergences within such longer-term timeframes are rare. So, we may expect substantial rallies from SHIB’s price.

The weekly chat shows the primary resistance at the $0.0000175 average price. That would mean an 85% increase from the present price level. Consequently, the Shiba Inu price has a massive upward potential if it confirms the double-bottom setup. Furthermore, Shiba Inu’s longer-term price forecast remains bullish because of optimistic readings from the daily and weekly time frames.

A substantial rally remains possible, and SHIB’s price may increase by up to 85%. However, a 7d closing beneath the support at $0.0000083 would cancel the bullish analysis for Shiba Inu’s price. Such developments can see SHIB plummeting toward the nearest support zone at $0.0000060. Moreover, the overall cryptocurrency market supports Shiba Inu’s upside stance.