- SHIB is quickly getting to a crucial support area at its descending channel.
- An increasing interest of buyers is present, as shown by volume and RSI at the present price.
- A bounce out of this area has the potential of causing an upward jump of more than 100 percent.
Jonathan Carter, a top crypto analyst, recently tweeted on X that Shiba Inu (SHIB) is creating a descending channel on the daily chart. He described that such a chart pattern, although it normally indicates the gradual decline of the price between two downward sloping lines, tends to give a strong reversal when the price touches the lower support levels.
Source: X @ Jonathan Carter
In his opinion, SHIB already fell below the upper resistance line and is currently retesting the middle of this channel. Carter has also given some of the upside targets in case a rebound occurs, and these targets include 0.00001250, 0.00001500, 0.00001730, and 0.00002
SHIB Trades at 0.00001090 as Buyers Watch Technical Targets
To support this analysis, using recent market data from TradingView, SHIB is selling at approximately $0.00001099 as of the time of writing, with a daily gain of roughly 5.94%. Even though it was moving downward in the last few weeks, now the price is approaching a number of vital technical markers.
Source: TradingView
Since it’s below the 50 line, the RSI indicates that the token is currently in the neutral zone. But an increase in buying pressure could result in a reversal.
In the meantime, MACD is below the signal line, although the early signs of the lines getting closer together can be noticed. This is also a signal of a change of momentum.
Shiba Inu Volume Spike Signals Buyer Interest at Lower Levels
Shiba Inu’s volume data also shows that there has been some buying interest at these lower levels, as seen in the recent uptick in green volume bars. If this continues, it could provide the momentum needed for a bullish reversal.
SHIB’s price action suggests that it is testing a demand zone, and traders are watching to see if this level will hold and trigger a move back toward previous highs.
With SHIB nearing a critical support area inside a long-standing descending pattern, both technical indicators and chart patterns seem to agree with Carter’s forecast.
Also Read: Shiba Inu (SHIB) Drops to $0.0000103 Amid Crypto Sell-Off and Geopolitical Risks