Shiba Inu (SHIB) is currently facing a critical moment that could make or break its future. After a decline in the overall altcoin market, SHIB’s price movement is being influenced by two conflicting chart patterns, both of which could have significant consequences for its price in the long run.
The 1-week chart for SHIB reveals a tale of two patterns. On one hand, there is a bullish triple bottom pattern, which suggests a potential end to SHIB’s two-year downtrend. On the other hand, there is a descending triangle pattern that has been forming for over 13 months, indicating a bearish outcome. An analysis on August 30 already warned about this scenario (source).
Yesterday, SHIB’s price dropped to a low of $0.00000697 before slightly rebounding to $0.00000722. This puts it in a precarious position just above the crucial support line of $0.00000715. To avoid the bearish implications of the descending triangle and confirm the triple bottom pattern, it is crucial for SHIB to maintain a weekly close above this price.
The triple bottom pattern is characterized by three roughly equivalent lows that bounce off a support level, leading to a breakout above resistance. This indicates a shift in momentum from sellers to buyers. SHIB seems to meet the criteria for a triple bottom pattern, with a preceding downward trend, three equal lows allowing for a horizontal trend line, and a decline in volume throughout the pattern, suggesting weakening bearish momentum.
SHIB’s journey through this pattern began in June 2022 with its first low at $0.00000715. After a brief recovery, it reached its second low in December 2021 at $0.00000781. The most recent low was recorded in June 2023 at $0.0000060.
However, the bullish narrative of the triple bottom pattern is challenged by the bearish undertones of the descending triangle pattern. If SHIB’s price falls below the $0.00000715 support, it could confirm the descending triangle pattern and potentially push SHIB towards its year-to-date low of $0.000006. Breaking this level could lead to uncharted territory and the possibility of a new all-time low.
Traders often look for additional confirmation of patterns through technical indicators, such as the Relative Strength Index (RSI). Currently, SHIB’s weekly RSI stands at a neutral 39.8. However, a recent dip below the 30-mark, indicating oversold conditions, suggests that the recent price drop might have been the last for SHIB.
If the triple bottom pattern is confirmed, SHIB could experience a significant rally. The immediate target to watch would be the 23.6% Fibonacci retracement level at $0.00002545, which could result in a potential surge of approximately 250% from its current price.
In conclusion, the future of SHIB hangs in the balance. The upcoming days and weeks will be crucial in determining whether it will embark on a bullish rally or succumb to bearish pressures.
Featured image from Trader 2.0, chart from TradingView.com
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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