As meme coins continue to struggle in a bearish market, Shiba Inu (SHIB) is nearing a critical support level. With Bitcoin dipping below $80,000, the meme coin market cap has plummeted to $44 billion, and SHIB has seen a 9% drop in the past week. Meanwhile, Dogecoin (DOGE) has fallen by 18%.
Currently, SHIB is showing signs of lower price rejection at the crucial psychological level of $0.000010. Could this signal the start of a bullish reversal?
### **Is SHIB Ready for a Bullish Reversal?**
On the daily chart, SHIB has experienced a 65% pullback from its recent swing high of $0.00003285, forming a falling channel pattern. The price is now approaching the local support trendline, with the intraday candle hitting a low of $0.00001082.
The long-tail candle has pushed SHIB’s price to $0.00001163, suggesting a potential bullish reversal within the channel. The daily RSI also shows strong divergence, remaining above the oversold zone, which increases the likelihood of a bounce.
### **On-Chain Indicators Highlight Key Levels**
According to IntoTheBlock’s Global In/Out of Money Indicator, SHIB is trading between $0.00001 and $0.000012. The immediate support zone ($0.000008 to $0.000011) holds 41.12 trillion SHIB across nearly 198,000 addresses, making it a strong area for potential recovery.
However, resistance lies between $0.000012 and $0.000014, where 25.66 trillion SHIB is held by 60,000 addresses. Breaking this zone could be challenging, especially with the next resistance level ($0.000014 to $0.000019) holding a massive 550 trillion SHIB across 165,000 addresses.
### **SHIB Price Targets**
The recent bounce occurred near the S-1 Pivot Support Level at $0.00001061. If SHIB maintains momentum, bulls could target the overhead trendline at $0.000013. A breakout from the channel could push the price toward the center pivot line at $0.00001493.
### **Final Thoughts**
While SHIB shows potential for a bullish reversal, the road ahead is filled with resistance. Traders should keep an eye on key support and resistance levels for potential entry and exit points.
*Disclaimer: This content is for informational purposes only and should not be considered financial advice. Always conduct your own research before making any investment decisions.*
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