- SHIB stuck below $0.000008 after a rejected breakout attempt.
- A falling wedge pattern forms, signaling a potential bullish reversal.
- SHIB needs to clear 50-day and 200-day moving averages to rally.
The meme-inspired cryptocurrency Shiba Inu (SHIB) is struggling to regain footing after a failed breakout attempt earlier this month. SHIB is still stuck in a downtrend despite some positive technical developments suggesting a bullish reversal may be forthcoming.
Key resistance levels continue blocking SHIB.
Image Source: Trading View
SHIB currently sits below the $0.000008 mark after briefly surging to highs around $0.00000730 in mid-October. However, the rally quickly stalled out, with prices retreating to $0.00000705, where the coin continues to trade.
Additionally, SHIB remains below its 50-day moving average near $0.00000739, unable to find enough momentum to overcome this initial resistance. More critically, the 200-day moving average sits higher at $0.00000846, underscoring the deeper downtrend still weighing on SHIB. The meme coin must see massive buying pressure before breaking this long-term barrier.
A falling wedge takes shape on charts.
However, analysts have highlighted a falling wedge pattern on SHIB’s price chart. Falling wedges typically presage bullish breakouts as selling pressure dissipates. Hence, this pattern provides hope for SHIB bulls expecting a trend reversal.
Besides the falling wedge, SHIB also recently bounced off its 21-day moving average, which signals the potential early stages of a sustained uptrend. If SHIB can build on this momentum and close decisively above the 21-day average, it may finally have enough upside potential to retake $0.000008.
Additionally, breaking out of the falling wedge could provide further bullish confirmation. In that event, SHIB may set its sights on the following resistance zones that go around $0.0000076 and $0.00000845.
Cautious optimism for SHIB Bulls
For now, caution remains prudent around SHIB, which still faces some stubborn technical obstacles. However, the consolidation pattern combined with constructive chart formations has raised hopes that SHIB is priming for a push higher.
Hence, traders will monitor SHIB’s price action near key moving averages and trendlines for definitive signs of a trend reversal. Any breakouts will need to be confirmed by sustained trading volumes.
SHIB bulls have reasons for cautious optimism even if the path remains challenging. But with the right confluence of technical signals, SHIB could regain its footing and leave its recent struggles behind. Patience and vigilance will be critical virtues for SHIB investors in the coming days and weeks.
