$SHIB
🚨 Technical Analysis Points to Potential Reversal 🚨
Market analysts are closely monitoring SHIB’s price action, with many eyeing the $0.000016 resistance level as a key breakout target. Despite the recent market pullback, several technical indicators suggest a potential bullish reversal may be forming.
SHIB has declined nearly 20% over the past week after failing to maintain its recent peak of around $0.00001740. The token must now hold critical support near $0.00001380 to maintain bullish momentum.
According to technical analysts, SHIB appears to be transitioning from a corrective to an impulsive phase. The token has reportedly completed a complex W-X-Y-X-Z correction pattern and may be setting up for a new bullish wave if it holds above the key support level of $0.00001160.
The Market Value to Realized Value (MVRV) ratio for SHIB has dropped to levels historically associated with price bottoms. A similar reading in Q3 2024 preceded a 128% rally, suggesting potential for substantial gains if the pattern repeats.
On-chain transaction volumes in loss have declined sharply from nearly 5 trillion SHIB to under 600 billion, indicating that sellers may be exhausted and selling pressure could be easing.
The Chaikin Money Flow is increasing in trend as price declines, which some analysts interpret as accumulation by smart money. Meanwhile, the Average Directional Index shows decreasing bearish power, potentially signaling a trend reversal.
SHIB is forming what appears to be an ascending triangle pattern with a possible breakout target of $0.000016. A successful break above this level could open the path to targets at $0.000022 and beyond.
Traders are watching for a reclaim of the $0.00001430 level, which would confirm strength and potentially trigger a new rally phase.
