Shiba Inu is showing signs of a possible price reversal. SHIB is currently consolidating after bouncing off important support levels following an extended downtrend over the previous few months.
The asset faces many obstacles, but its recovery is out of the question. SHIB’s ability to move higher will depend on several key price indicators.
Potential Reversal Situation: SHIB’s ability to hold support above the 100-day EMA, currently located at $0.00001664, is the first major component of a reversal. SHIB will create a strong base for a comeback if it can maintain this level.
A sustained move above this support would indicate that buyers are retreating and sentiment could become more positive. Holding above this level will boost confidence in further gains as it has historically proven to be a significant support area.
This would indicate that SHIB has enough momentum to challenge higher levels if it breaks above this price point. This area has recently served as a site of resistance; a breakout will allow SHIB to rise towards $0.00001900. Reaching this level will confirm the reversal and attract more buyers, opening the way for additional moves higher.
Important price points to pay attention to:
Watch $0.00001664, which is the first critical support. SHIB needs to be held above this level to prevent further downward pressure and create potential for a reversal. A price drop below this level could indicate a return to bearish sentiment.
The next most important level is $0.00001800. A break above this resistance will indicate a change in market sentiment and will likely trigger a new wave of buying. When confirming a bullish reversal, this level is critical.
The breakout target is $0.00001900. At $000001900, SHIB will next look to break above $0.00001800. If SHIB crosses this threshold, it will mean that it has reversed its previous downward trend and may be poised for a long-term rally.
