Shiba Inu (SHIB) has reached a critical level that may set the stage for a price reversal. After experiencing a death cross, SHIB’s price action suggests that it could be nearing a bottom. A double bottom pattern, often seen as a potential trend reversal signal, has emerged, though it remains important to monitor broader market conditions.
Price Movement and Double Bottom Formation
SHIB has been on a downward trend, struggling to regain momentum after a prolonged sell-off. Recently, a double bottom pattern formed near the $0.00001485 level, signaling potential stabilization for the meme token. Typically, when this pattern appears, it suggests that buyers could step in and halt further declines, establishing a potential support level.
Source: CoinMarketCap
A key technical signal, the death cross, has also appeared on SHIB’s chart. This occurs when the short-term moving average crosses below the long-term moving average, indicating bearish momentum. Historically, this formation has led to additional price drops. However, on occasion, it has marked the beginning of a significant price reversal.
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For a bullish reversal to gain traction, SHIB must surpass key resistance levels, beginning with the 50-day moving average, which currently sits around $0.00001700. If SHIB manages to break through this resistance and maintain it, a recovery toward $0.00002000 could be possible. However, the token may face challenges, as the upside volume remains weak.
Risk of Continued Decline
If selling pressure continues, SHIB could see further declines toward $0.00001300 or lower. The token’s ability to recover remains uncertain due to the lack of strong bullish catalysts in the market.
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While SHIB has reached a significant technical support level, its future direction will largely depend on the overall market trend and the reemergence of buyer interest. SHIB is at a crucial technical juncture, with its ability to sustain a recovery still in question.
The broader market’s direction will play a significant role in determining SHIB’s next move. Investors must stay vigilant, as further market developments will likely influence the token’s price trajectory.
