The price of the popular meme-inspired cryptocurrency Shiba Inu (SHIB) has seen renewed volatility in recent weeks, forming several technical patterns across varying timeframes that present differing implications for its near-term trajectory, according to an analyses on TradingView.
On the 4-hour chart, SHIB appears to be forming an ascending triangle consolidation pattern, with price action contained between horizontal resistance around $0.0000075 and a rising uptrend support line. This is typically viewed as a bullish continuation pattern, implying potential upside breakout ahead.
However, zooming out to the daily chart reveals a bearish double top pattern has taken shape, with SHIB failing to break above $0.0000075 on two separate occasions earlier this month. This suggests there is significant selling pressure around that resistance level curbing further upside momentum.
Adding to the conflicting signals, SHIB price has rebounded sharply over the past week in a V-shaped recovery after briefly dipping below $0.00000695. This rapid reversal indicates the crypto asset still has underlying support and buying interest at lower levels.
With the pivotal decision on a Bitcoin futures ETF approaching in October, market participants are hopeful this event could boost overall crypto market sentiments and provide a catalyst for assets like SHIB. However, the cryptocurrency faces immediate resistance around the $0.0000075 level where it has struggled to make headway.
On the indicator front, the MACD is trending upwards in bullish territory, but the RSI shows a bearish divergence which could foreshadow additional weakness.
In conclusion, while SHIB’s short-term outlook remains murky amid these mixed signals, a break above $0.0000075 resistance could open the door for further gains toward $0.00001. But failure to overcome this barrier could see the crypto asset revisit support around $0.00000695 once again in the days ahead.
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