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Shiba Inu (SHIB), one of the most well-known meme coins, has had a challenging year in 2024, facing a significant 43% correction. This decline has caught many by surprise, especially as the broader cryptocurrency market was gearing up for a potential bull run in the last quarter of the year. Despite the tough performance, there’s hope on the horizon for SHIB holders, with the cryptocurrency showing signs of a possible reversal as the first quarter (Q1) of 2025 draws to a close.
As of December 5, 2024, SHIB‘s price stood at $0.000033. However, it has since dropped to around $0.000015, forming a series of lower highs and lower lows that led to the creation of a falling wedge pattern. This technical formation is typically a bullish reversal pattern, signaling that selling pressure is waning and a breakout could be imminent.
The key to confirming this potential reversal lies in SHIB breaking above the upper trendline of the falling wedge. Currently, the cryptocurrency is trading above the lower trendline, with increasing volume suggesting the possibility of an upward breakout. The Chaikin Money Flow (CMF) indicator has also seen a positive shift, climbing above the signal line at 0.09, further reinforcing the idea that SHIB may be poised for a recovery.
On the daily chart, SHIB’s price action is echoing similar bullish signals on the 4-hour chart. The Moving Average Convergence Divergence (MACD) has formed a golden cross, a bullish signal that often precedes price rallies. If this momentum continues, SHIB could see its price move toward $0.000020, with a highly optimistic scenario pushing it up to $0.000025.
However, it’s essential to note that if SHIB faces rejection at the upper trendline of the wedge, the bullish reversal might not materialize immediately, and the price could slide further to $0.000012.
Also Read: Shiba Inu Burn Rate Skyrockets 1300%—Is a 450% SHIB Price Surge on the Horizon?
As the end of Q1 2025 approaches, all eyes will be on SHIB’s price action to determine whether the cryptocurrency can regain its upward momentum and recover from its recent losses.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
