Shiba Inu, the meme coin with a cult following, is currently navigating a complex technical landscape. While the broader cryptocurrency market is experiencing a bullish uptrend, SHIB has found itself trapped in a descending triangle formation, a pattern that often precedes a significant price movement.
The coin has been under pressure, trading a full 63% below its 52-week high. This prolonged sell-off has led to a death cross, a bearish technical indicator where the 50-day moving average crosses below the 200-day moving average. However, there’s a glimmer of hope for SHIB enthusiasts.
On the weekly chart, a symmetrical triangle pattern is emerging. This pattern typically indicates indecision in the market, with both bulls and bears vying for control. A breakout to the upside could ignite a powerful rally, potentially propelling SHIB to new heights.
Technical analysts are closely watching the support level at the 38.20% Fibonacci retracement. If SHIB can hold above this level, it could bolster the chances of a bullish breakout. Additionally, the MACD indicator is showing signs of a potential bullish crossover, which could signal a shift in momentum.
Despite the bearish technical indicators, the Shiba Inu community remains resilient. According to on-chain data, a significant portion of SHIB holders have maintained their positions for over a year. Moreover, the presence of large holders, or whales, suggests that there is still substantial interest in the coin.
Ultimately, the fate of Shiba Inu lies in its ability to break out of the descending triangle. If successful, a rally of up to 200% is not out of the question. However, several resistance levels, including $0.000029 and $0.000035, could pose challenges to any upward movement.
As the cryptocurrency market continues to evolve, Shiba Inu remains a captivating story. Whether it will emerge from its current predicament as a triumphant victor or succumb to further losses remains to be seen.