After Wavering at a Crucial Support Level, Shiba Inu (SHIB) Price Is Poised to

Shiba Inu (SHIB) price has wavered at a crucial support level, pointing to an eventual rebound in the coming weeks.

Shiba Inu price has wavered at a crucial support level, which may lead to an eventual rebound in the coming weeks.

Shiba Inu (SHIB) price has been testing the crucial support level at $0.00001055. If the coin stays above that support, it could stage a massive rally.

The recent price action in SHIB is bearish, but the technical indicators suggest that the coin may be bottoming out.

Shiba Inu price has come under pressure in the past few months as it continues to hover above the crucial support level at $0.00001055. As of 16:38 GMT on Thursday, December 15, it was trading at $0.00001345, up slightly from last year’s low of $0.00001055.

Shiba Inu price technical analysis

The weekly chart reveals that the SHIB price has remained under pressure in the past few months. It has dropped from a high of $0.00003322 in November to the current $0.00001345.

The coin has found a strong support at $0.00001055, its lowest swing in August last year. That is a sign that bulls are fighting hard to prevent more downside from that level.

The Relative Strength Index (RSI) has remained above the ascending trendline that connects the lowest swing since June last year. Also, the two lines of the Stochastic Oscillator have made a bullish crossover and are pointing upwards.

Therefore, it is likely that the SHIB price will act like a coiled spring if it remains above the support at $0.00001055. This event would bring attention to the next significant level of $0.00003322, representing the highest swing in November, which is about 145% above the current level.

However, there is also a risk that the SHIB price will drop, especially when it drops below that support level. A drop below that support will point to further decline to the support at $0.0000055, its lowest swing in June 2023. This price is about 60% below the current level.

SHIB price chart via TradingView

SHIB whales are buying

A likely catalyst for the SHIB price is the fact that many whales are accumulating it. The chart below shows that the ratio of the SHIB token holders between 100,000 and 100 million tokens have been growing in the past few months. That is a sign that these investors are buying the dip as the coin drops.

The Mean Dollar Invested Age (MDIA) of Shiba Inu has continued rising in the past few months. Its 180-day MDIA figure has jumped to 106 from the year-to-date low of 39. Similarly, the 365-day figure has risen from 137 in March to 145 today. That is a sign that long-term holders are not selling their coins.

Crypto analysts are optimistic about Shiba Inu. For instance, Javon Marks, a well-known crypto analyst, observed that the coin has formed an inverse head and shoulders pattern, a traditional bullish indicator. He expects that the token will rise to $0.000081, up by over 512% from the current level. Another analyst pointed to a surge after the TD Sequential indicator flashed a buy signal.