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Despite a prolonged bearish trend, Shiba Inu's current technical indicators indicate that the worst may already be over. The data presents a somewhat different picture despite persistent concerns that SHIB might add another zero to its price.
As of press time, SHIB is trading close to $0.00001218, above the primary horizontal support level that is indicated in blue on the chart. For the last six months, this level has been used as a price floor on multiple occasions, indicating strong buyer interest and protecting SHIB from additional declines.
Although it seems unlikely at the moment, a drop below this range could introduce another zero. Volume profiles indicate a slow drop, indicating that both bulls and bears are exercising caution. It is telling, though, that there is not any strong selling pressure at these levels. It shows that the market is saturated, with the majority of weak hands having left and the remaining investors holding or building up. With the RSI in neutral territory right now, there are no significant overbought or oversold indicators, indicating that the price may soon consolidate.
Nevertheless, bulls seem worn out, showing no overt indications of bullish reversal patterns or intense buying pressure. The moving averages, which serve as resistance above the current price, are still trending downward. Long-term holders may still be sufficiently convinced, though, based on SHIB's persistence at the $0.00001200 support level to avert a more severe collapse.
SHIB may continue to trade sideways in this narrow range unless a major catalyst draws attention back to the market or internal ecosystem developments. However, it does not seem likely that the price will drop by another zero unless there is a marketwide collapse. The base structure that is developing around the current level suggests that a catastrophic breakdown is not the most likely scenario, even though SHIB's upside potential is still limited for the time being. SHIB is holding the line for now.
Vladislav Sopov
Dan Burgin