Analyst Shares Shiba Inu Simple Trading Plan and Ideal Timing to Go Long

Shiba Inu (SHIB) continues to struggle with its weekly and monthly lows, facing significant resistance as it hovers near critical support levels.

Despite this challenging price action, analysts suggest that a trendline breakout could signal a potential bullish reversal. The market sentiment remains cautious, and technical indicators paint a mixed picture of what lies ahead for SHIB.

Analyst Spetsnaz emphasizes a straightforward strategy in navigating Shiba Inu’s current market conditions. The focus is on a potential breakout above the descending trendline that has been dictating SHIB’s price action.

According to the analyst, if the price manages to break through this trendline, it could present a favorable opportunity for a long position. However, if SHIB fails to break this resistance, the downtrend will likely continue, signaling further downward pressure on the price.

Image Source: https://x.com/spetsnaz_3/status/1823382090873712710

Will Shiba Inu Break the Downtrend?

As seen on the analyst’s chart, the SHIB market has been in a clear downtrend, with a descending trendline dictating price movements since June. This trendline has acted as formidable resistance, consistently pushing the price downward and preventing any sustained upward momentum.

The price action reveals a pattern of lower highs and lower lows, aligning closely with this trendline. However, the price is now attempting to test this resistance, a move that could determine the next phase of market direction.

Support levels play a crucial role in this scenario, with the first key level at $0.00001073, where SHIB has previously found buyer interest. Below this, significant support lies at $0.00000879, with a secondary level at $0.00000848, representing the last lines of defense against further declines.

On the flip side, immediate resistance is noted at $0.00001375. A breakout above the trendline could indicate a potential upside, with higher resistance targets at $0.00002315 and $0.00002572.

More Holders Are Out of The Money

The latest data from IntoTheBlock highlights the current sentiment among SHIB holders. A smaller number of addresses fall within the $0.000008 to $0.000013 range, which are currently profitable.

Shiba Inu IOM | IntoTheBlock

Conversely, more are “Out of the Money,” particularly those who bought at higher prices, indicating potential selling pressure if prices remain subdued. The concentration of addresses out of the money at higher prices suggests potential resistance levels.

As the price approaches these levels, holders may attempt to sell. Further, if the price drops below $0.000013, the small group at break-even could start realizing losses, leading to a sell-off that might push the price lower.

Potential for a Bullish Reversal

In a related analysis, MMBTtrader, an analyst on TradingView, suggested that Shiba Inu might be preparing for a significant upward movement.

Additionally, Maks Klimenko, another analyst, has identified a reversal pattern following a sweep of key lows around $0.00001333. This view is supported by the MACD indicator, which shows a bullish divergence, further bolstering the case for a potential price increase. The market remains in a critical phase, with the upcoming price movements likely to define the future trajectory of SHIB.

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