The Shiba Inu cryptocurrency is currently hovering near a crucial Fibonacci support level, which could potentially determine its future price trend.
Based on technical analysis, it appears that the value of Shiba Inu’s project coin (SHIB) has been decreasing since hitting a high of $0.0000157 on February 4th.
This decline was preceded by bearish divergence signals on the daily RSI (green line), which often indicate an upcoming drop in price.
Currently, the daily RSI is below the 50 mark, which further supports the bearish trend. Initially, SHIB appeared to rebound off of its previous descending resistance line (green circle), but it was unable to maintain this momentum and fell below that mark on March 9th.
Furthermore, on the same day, the token also broke through its $0.0000100 support area. If the market fails to recover above this level, the next immediate support at $0.00000850 will come into play.
However, if Shiba Inu gains momentum, the bulls will have to contend with the downside resistance line once again.
Despite the negative outlook on the daily chart, the shorter 6-hour timeframe offers a glimmer of hope. Wave analysis suggests that the SHIB rate may be undergoing a correction after a 5-wave bullish structure that began in January.
Additionally, if the market reaches a bottom at its current level, it will result in an A:C wave ratio of 1:1, which is the most common ratio for such structures.
This theory is further supported by the bullish divergence that has emerged on the 6-hour RSI (green line). However, if SHIB fails to bounce back, it may be a sign that the trend is bearish, and we could see a decline to the support level at $0.00000850 or possibly even lower.
Source: Trading View
The future of Shiba Inu remains uncertain, with the fate of its further trend depending on how the price behaves around current levels. If SHIB manages to rebound, there is a possibility of a retest of $0.0000130.
However, if this attempt at a bounce fails, the meme token may plummet to the support level at $0.0000850. Ultimately, it is difficult to predict with certainty how SHIB will perform in the coming days and weeks, and investors should exercise caution when making decisions regarding this volatile cryptocurrency.