Shiba Inu (SHIBUSD) appears to be experiencing a pullback after a recent uptrend, with price currently testing key Fibonacci retracement levels.
The cryptocurrency has established a clear ascending support trend line that has been holding since mid-March, suggesting a longer-term bullish bias despite the current corrective move.
Key Shiba Inu Levels To Watch
The chart shows several critical price levels defined by Fibonacci retracement from the recent swing low to swing high. The 38.2% Fibonacci level is located at 0.00001327, which has been recently tested as support. Price is currently hovering near the 50% retracement level at 0.00001306, which could serve as an immediate support zone.
Should selling pressure intensify, the 61.8% Fibonacci level at 0.00001286 becomes the next significant support to monitor. This level aligns closely with the ascending trend line, potentially creating a confluence support zone that could act as the “line in the sand” for the current bullish structure.
The previous swing high around 0.00001392 now serves as overhead resistance, while a break below the ascending trend line and the 100% Fibonacci retracement at 0.00001220 would signal a possible trend reversal.
SHIBUSD Technical Indicators Analysis
The moving average configuration shows a bullish bias, with the 100 SMA (blue line) positioned above the 200 SMA (red line). This arrangement confirms that the path of least resistance remains to the upside, suggesting the current pullback may be temporary rather than a full reversal.
However, traders should note that the gap between these indicators appears to be narrowing, which could potentially signal weakening bullish momentum.
The stochastic oscillator has recently moved down from the overbought region, indicating exhaustion among buyers. Currently, the oscillator is heading south, suggesting that bearish pressure may continue in the short term until it reaches oversold conditions. This aligns with the current price action showing a pullback to the Fibonacci retracement levels.
Similarly, the RSI has declined from recent highs and is currently in the neutral zone, giving sellers some room to push prices lower before reaching oversold territory. The positioning of both oscillators suggests that the correction could continue in the near term before finding sufficient support for a potential bullish reversal.
Shiba Inu Price Outlook
Shiba Inu appears to be in a bullish pullback scenario, testing key Fibonacci retracement levels after a strong upward move. The current price action suggests a healthy correction within a broader uptrend, with the ascending support trend line providing a structural foundation for potential continuation.
If the 50% to 61.8% Fibonacci zone between 0.00001306 and 0.00001286 holds as support, we could see Shiba resume its upward trajectory, potentially targeting the recent highs around 0.00001392 or establishing new highs above this level. The presence of the rising trend line coupled with the bullish moving average configuration supports this scenario.
However, traders should remain cautious of potential reversal signals. The appearance of bearish candlestick patterns at current levels or a decisive break below the 61.8% Fibonacci level and the ascending trend line could indicate a deeper correction. In such a scenario, the 100% Fibonacci level at 0.00001220 becomes the next significant target.
For the bullish scenario to gain credibility, we would need to see the stochastic and RSI oscillators forming bottoms and turning upward, accompanied by increased buying volume. Conversely, continued downward momentum in these indicators would suggest further correction before a potential reversal.
