The Shiba Inu (SHIB) price is entering a week that has the potential to be the most important week in 1.5 years. As explained in previous analyses, SHIB has shown conflicting patterns in the weekly chart: a bullish quadruple bottom and a descending triangle.
This week, the situation could be resolved and the bullish chart pattern may be validated. At press time, SHIB traded at $0.00000933. Thus, the Shiba Inu price broke above the descending trendline of the triangle pattern.
Why SHIB Enters The Most Crucial Week In 1.5 Years
The quadruple bottom pattern has formed over the extended period of 1.5 years, with the price touching the support zone between $0.00000715 and $0.000006 four times, creating an ultra-strong base. Over the last 18 months, it suggested a strong level of support, as SHIB has consistently bounced off this price point, indicating a reluctance to move lower.
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The descending triangle, characterized by a flat lower-bound support level at $0.00000715 and a down-sloping upper-bound resistance trendline, has acted as strong resistance. The price has been rejected at the resistance line a total of 10 times since last year. As the price pushed above this trendline, a weekly close above this line could signify the commencement of a bullish reversal.
Moreover, the 50-week exponential moving average (EMA – orange line) also played a crucial role. On the occasions when SHIB was able to break out above the descending trend line of the triangle (on the lower time frames), it never managed to close the week above this indicator.
This week, SHIB bulls have a new chance. While SHIB is already trading above the descending trendline of the triangle, the price still has to close above the 50-week EMA at $0.00000973 next Sunday. If it succeeds, this would mark an unprecedented extremely bullish sign.
Finally, a breakout above the psychologically important level of $0.00001 could be the last hurdle for a strong move upward. A breakout of this nature could lead to a shift in market sentiment, with the potential to initiate a significant price surge.
Notably, the volume does not show an unusual spike yet, which would typically accompany a breakout, suggesting caution. However, the weekly RSI stands at 57.36, indicating the asset is neither overbought nor oversold and potentially allowing room for upward movement if a breakout is confirmed.
Short- And Long-Term Shiba Inu Price Targets
Looking at the Fibonacci levels, the upcoming key price targets to watch following a successful breakout would be the 0.382 and 0.5 Fibonacci levels, standing at $0.00001051 and $0.00001190, respectively. These levels would be the short-term targets for SHIB, potentially acting as resistance points in the event of an uptrend.
In the mid-term, the next crucial price levels are the 0.618 Fibonacci level at $0.00001329, the 0.786 Fibonacci level at $0.00001527 and the August 2022 swing high at $0.00001780. However, traders can also expect notable resistance at $0.000017 which acted as crucial support and resistance in the past.
In the long term, the 1.618 Fibonacci extension level at $0.00002509 and the 2.618 Fibonacci extension level at $0.00003690 are some notable price targets.
In conclusion, the weekly close firmly holds the market’s attention. If SHIB’s price sustains above the descending trendline, it would mark a significant technical pivot point, likely catalyzing a bullish wave due to the culmination of the quadruple bottom support hold and the descending triangle breakout.
Featured image from Shutterstock, chart from TradingView.com
