The price of Shiba Inu has shown a warning sign on the weekly chart after the appearance of a bearish flag pattern. A bearish flag typically indicates a brief pause in the downtrend before the bearish momentum continues to push SHIB lower.
This bearish flag will be considered valid if the price of SHIB falls below the lower support level and extends the downtrend. In this case, this meme coin could drop to the 123.6% Fibonacci level of $0.0000050, and this drop could erase all the gains that Shiba Inu has made since 2024.
The only way for the price of Shiba Inu to invalidate this bearish flag pattern is if it breaks above the resistance at the upper trendline of the flag and exceeds $0.000021. This movement will indicate that buyers are taking control of the leading meme cryptocurrency and that the momentum is about to turn bullish.
However, the RSI invalidates the possibility of a potential bullish reversal with its value of 46, indicating that the current momentum is bearish. This could extend the bearish pressure and force the price of Shiba Inu to drop below $0.00001.
The MACD further supports this outlook, as it remains in the negative zone. However, the MACD line formed a buy signal after crossing above the signal line, and if buyers enter now, it could invalidate the mentioned bearish thesis and favor a bullish trend for this altcoin.
