The Shiba Inu (SHIB) price is trading at a crucial Fib support level. The reaction to it could determine the future trend.
The Shiba Inu (SHIB) price has fallen since hitting $0.0000157 on Feb. 4. The decrease was preceded by bearish divergence in the daily RSI (green line), a sign that often precedes drops. The daily RSI is now below 50, another sign associated with bearish trends.
Initially, the price seemed to bounce at the previous descending resistance line (green circle). However, it failed to maintain it and fell below it on March 9. Moreover, the price of Shiba Inu broke down from the $0.0000100 support area on March 9.
If the price does not reclaim this area, it could fall to the next closest support at $0.0000085.
On the other hand, in case the Shiba Inu token regains momentum, the descending resistance line is expected to provide resistance again.
Can Shiba Inu (SHIB) Price Recover?
While the technical analysis from the daily time frame is decisively bearish, the shorter-term six-hour chart offers a glimmer of hope.
The reason for this is the wave count. It is still possible that the SHIB price is just correcting the five-wave increase that began in January. Additionally, if the price were to find a bottom here, it would give waves A:C an exactly 1:1 ratio, which is the most common in such structures.
This possibility is also supported by the bullish divergence developing in the six-hour RSI (green line).
However, if the SHIB token price fails to bounce, it would mean that the trend is bearish. In that case, a drop to the $0.00000850 support and possibly lower could follow.
To conclude, the Shiba Inu price forecast is still undetermined. Whether the price bounces at the current level or breaks down could determine the future trend. In case of a bounce, the SHIB price could retest $0.0000130. If, however, the price fails to bounce, a drop to $0.0000850 could follow.
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Source: https://beincrypto.com/shiba-inu-shib-price-crucial-bullish-structure/