Shiba Inu (SHIB) price is at the most critical point in its history?

After a spectacular rally in Shiba Inu (SHIB) at the beginning of the year, the price has been on a steady decline since February 5, which neither the beta launch of Shiberium nor the increase in monthly burn rates were able to stop. With the price currently trading at $0.00000804, SHIB is at possibly the most critical point in its young history.

A look at the 1-day chart shows that SHIB reached a local high of $0.00001575 on February 5, 2023. From that point until the beginning of May, the price formed a descending triangle with a horizontal trend line at $0.000010 as support for a long time. , This price level was also in line with the 23.6% Fibonacci level.

The Most Important Moment in Shiba Inu Price History?

The downtrend continued bullish when the trend line was broken to the downside. Year after year all the earnings were gone. However, one last hope now could be the triple bottom chart pattern that the Shiba Inu price is currently showing.

The price area at $0.00000776 served as last support in mid-June 2022 and late December 2022 and now again. The Shiba Inu meets all three characteristics of the chart pattern.

First, the three lows should be roughly equal in price and separated by a certain distance (June and December 2022, June 2023). Second, volume should decrease throughout the pattern, which is a sign that the bears are losing strength. Looking at the time pattern of SHIB trading volumes, this condition can also be considered fulfilled.

Third, the Shiba Inu has been in a steady downtrend with lower highs since its all-time high in late October 2021. Therefore, the decisive moment may come now: while the trading volume decreases in the downtrend, the volume should increase during the uptrend. When the price breaks through the resistance levels. Only then does a trend reversal seem possible.

The first resistance to break is at $0.0000817. If successful, the 50-day exponential moving average (EMA) currently at $0.00000907 could come into focus. However, perhaps the most important resistance to confirm a fake breakout is the 23.6% Fibonacci level at $0.000010.

The bullish case for the Shiba Inu is also supported by a possible bullish divergence in the RSI on the 1-day chart. This occurs when the RSI indicates an oversold condition (SHIB’s RSI dropped as low as 24 in May), followed by a higher low associated with a lower price low.

Thus, the RSI of Shiba Inu price on the 1-day chart could be indicating bullish momentum. A break above the oversold zone in the recent past could be a signal for a fresh buy position. But the bearish case is still strong.

SHIB traders do not want to see the price drop below $0.00000716 at any cost. If this happens, it will be an alarming sign that SHIB may test the September 2021 low around $0,000006.

Featured image from iStock, chart from TradingView.com