Currently, SHIB price is trading at $0.00000981, slightly below the psychological mark. However, the weekly drop warns of a bearish outcome.
Following the break of the prominent weekly resistance trend line, SHIB price takes a brief walk above the $0.00001025 level. However, the air supply force is rapidly moving into a retest phase in the first week of January 2024.
With the possibility of a bullish failure due to the market-wide decline, Shiba Inu is in a fundamental trend for the turning point of 2024. On a positive note, our long-term Shiba Inu price prediction hints at a bull run triumphant for meme coins in 2024.
On the weekly chart, the high-volume breakout trend takes a 180-degree turn and loses dominance over the psychological milestone of $0.000010. However, the ongoing retest leads to a 5% drop in SHIB price this week with a long tail formation, reflecting active demand at lower levels.
Furthermore, the lack of bearish faith is evident in the decline in trading volume that accompanies the retest phase. Therefore, the chances of a post-retest reversal to regain bullish momentum are notable on Shiba Inu.
Technical Indicators
MACD Indicator: With the retest phase underway, SHIB price has a negative impact on the MACD and signal lines. The midline loses its bullish trend to enter a sideways movement and warns of a bearish crossover as the histograms move lower.
RSI Indicator: The downward trend on the daily RSI line reverses from the overbought limit and reflects a loss in buying pressure. Hence, momentum indicators warn of a loss in investor interest.
Shiba Inu Does Not Follow the Bullish Pattern
Shiba Inu price fell nearly 5% on Friday on the weekly chart after the cryptocurrency market took a hit following Matrixport’s report that the U.S. Securities and Exchange Commission (SEC) would reject applications for Spot Bitcoin ETFs. In doing so, the altcoin fell through a crucial support level of $0.0000102 to trade at $0.0000098.
The reason this price point is important for the meme coin is that it forms the neckline of the double bottom technical pattern, or “W” pattern, seen on the weekly chart. Known to be a bullish reversal pattern, it forms when an asset makes two different lows at the same level in separate trading sessions.
The level to which the price falls twice is considered the support level. In the case of SHIB, this support level is marked at $0.0000066, from where the altcoin recovered in early June and again in the last week of October.
Will SHIB Price Recover $0.000010?
The bulls lose their footing and the market loses momentum, causing a bearish decline if the retest phase fails. Furthermore, multiple meme coins are falling below their critical levels at a time like this.
For Shiba Inu, based on the SHIB price action analysis above, the retest will be crucial for buyers to hold above the $0.000010 mark. In such a case, the reversal may take the uptrend to the next resistance levels at $0.0000125 and $0.000015.
On the other hand, if the Shiba Inu coin price fails to recover $0.000010, then it could fall to $0.000008360.
Notwithstanding the most recent events, the bullish reversal pattern has not been completely invalidated, as the stop loss has been set at $0.0000094. If signals from the broader market pull the meme coin again and Shiba Inu price breaks the entry point marked on the neck line, though, it could have another chance to achieve the 35% rally towards the measured target.
By Audy Castaneda
