Shiba Inu is at a crossroads, and things could get tricky or improve.
The next move for Shiba Inu could determine its short-term performance, as it is currently at a key technical juncture. SHIB is facing a descending trend line that has restricted its rise since the end of July, with the current trading price close to $0.00001347. This resistance level overlaps with the 200-day moving average (about $0.00001428), forming an important technical pressure point. To regain upward momentum, bulls need to break through this level.
SHIB rotation
SHIB's movement could experience an unexpected reversal, potentially becoming bullish or bearish. If SHIB falls below the 50-day moving average ($0.00001208) and the 100-day moving average ($0.00001272) without breaking through the descending trend line, selling pressure may significantly increase, further exacerbating downside risks.
In the worst-case scenario, aside from exposing the support areas of $0.00001200 and $0.00001150, such a breakout could trigger a drop that effectively adds a zero to the price, pushing it towards the $0.000009 area.
Multiple scenarios
If SHIB breaks through the trend line and the 200-day moving average, it may trigger a bullish signal. A strong close breaking through the resistance level of $0.00001430 may quickly shift market sentiment to bullish. In this case, SHIB's next target may be $0.00001550, followed by a potential surge to $0.00002000, which is an important psychological level.
The current RSI is 54, placing SHIB in a neutral zone, indicating neither overbought nor significant bullish momentum. During this time, with low volume, a breakout above key resistance or support levels may lead to larger fluctuations. Investors need to be more flexible in this situation rather than making overly aggressive predictions.
If SHIB can stabilize above the 200-day moving average and volume increases, the price is expected to head towards $0.00002. Conversely, if SHIB falls below the current level and loses the moving average support, a larger pullback may be on the way. Currently, the Shiba Inu market is at a critical price range, either facing a significant pullback or a strong bullish breakout. The coming days may determine whether SHIB can break through $0.00002 or face larger downside risks.
