Healthy Retracement Keeps SHIB Price Bullish
The Shiba Inu price, which is the second highest-ranking meme coin in the crypto industry, has experienced a sharp sell-off of 11% in the last 24 hours due to the recent market correction. However, when looking at the larger picture, the price movement over the past two weeks shows a falling wedge formation. Currently, the SHIB price is trading at $0.000028 and is testing the bottom support trendline. Additionally, according to Fibonacci retracement levels, the SHIB price is testing the 50% level in line with the trendline, indicating potential for a bullish reversal.
Will Shiba Inu Bounce Back?
Based on a 4-hour chart analysis, the Shiba Inu coin trend is facing extreme supply pressure during this market pullback. Furthermore, if there is a drop in Bitcoin price, it could have a negative impact on the meme coin sector as a whole. On the price action front, if sellers continue to challenge the $0.000027 support level, it could signal a potential bounce back. In this scenario, the uptrend could reach the overhead trendline near the 38.20% Fibonacci level at $0.000032. A breakout from this resistance would indicate a continuation of the recovery trend and potentially surpass $0.00005. On the other hand, if there is a bearish breakdown and an extended market pullback, the meme coin could drop to $0.000023.
Technical Indicator:
- Exponential Moving Average: The ongoing correction has caused a crack below the 50-EMA and is now testing the 100-EMA.
- Relative Indicator: The RSI line has quickly descended below the halfway line and is heading towards the oversold zone.
Conclusion
The Shiba Inu price has experienced a sell-off in the midst of a market correction, but there are indications that it may bounce back. The falling wedge formation and the challenge of critical support levels suggest a potential bullish reversal. However, it is important to consider external factors such as the Bitcoin price and overall market sentiment, as they can have a significant impact on meme coins like Shiba Inu. Traders and investors should closely monitor the price action and technical indicators to make informed decisions.
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