- Shiba Inu rises 4.71% in 24 hours, reversing part of last week’s decline.
- SHIB tests critical support at $0.00000960, signaling potential bullish reversal.
- A falling wedge pattern indicates a potential bullish reversal if confirmed.
- RSI and MACD suggest cautious optimism amid market indecision.
Shiba Inu (SHIB) shows renewed strength after a slow week, climbing 4.71% over the past day. The recent uptick has drawn attention from traders who had seen the token drop 4.03% over the previous seven days.
At the time of writing, the token is trading at $0.00001030 with a 24-hour trading volume of $162.76 million, up by 25.8%. Its market capitalization has also risen 4.67% to $6.07 billion, highlighting renewed investor interest in the popular meme token.
This surge follows a bounce from lower levels, signaling potential accumulation by buyers. The market appears to respond to a technical setup on the charts, signaling a potential trend reversal if momentum builds.
Falling Wedge Formation Points to Breakout Potential
On the two-day chart, SHIB is forming a falling wedge pattern, a structure often associated with bullish reversals. This setup has evolved over several months as price action gradually narrows between two descending trendlines. The compression signals easing selling pressure, hinting that a breakout may soon occur if buyers maintain control.
Currently, SHIB is testing the crucial support zone near $0.00000960. This area has previously acted as a strong base where demand tends to rise. A decent bounce up from the spot and increasing Volume are indicative of fresh buying interest. If the price moves above the higher wedge boundary, the potential targets are $0.00001150, $0.00001410, $0.00001570, $0.00001770, $0.00002020, and $0.00002350.
SHIB Technical Indicators Show Market Caution
The weekly MACD is also hovering around the zero line at the moment. The MACD and signal line are both flat, indicating indecision and a lack of momentum. The earlier cycles indicated unmistakable bullish or bearish phases, but now the market is consolidated.
Meanwhile, the RSI is at 40.07, slightly below its 45.10 moving average. That indicates weak bearish sentiments, but not strong enough to signal oversold. The sideways action over the last weeks or so suggests fading buyer confidence, and keeping traders cautious for the time being.
Although the short-term configuration for SHIB supports a potential bounce, the failure below $0.00000960 will invalidate the bullish wedge configuration. Investors monitoring this configuration will likely look for confirmation with a strong breakout and increasing volume. In the meantime, discipline and risk management are paramount.
Also Read: Shiba Inu (SHIB) Testing Critical Support: Will It Surge to $0.00002350?
