A rare technical pattern has formed on the weekly chart of the Shiba Inu (SHIB) cryptocurrency, which may provide momentum for the removal of one zero from the asset's price. The token is currently trading at $0.00000547 and has shown a weekly increase of 6.72%. Attention is drawn to the technical divergence between the price and the actual indicators' metrics.
The main sign of a potential reversal is the classic bullish RSI divergence. While the price of SHIB has been setting new lows for several months, the relative strength index shows a series of higher lows on the weekly timeframe. This indicates that selling pressure is exhausted and the bearish trend is weakening. Two key factors have emerged on the chart: the RSI divergence indicates a hidden influx of liquidity into the asset, and the current green momentum has allowed the price to hold critical lows.
Buyers have established a local support level and halted aggressive bearish pressure. This reduces the likelihood of further declines in the short term, as the asset attempts to solidify short-term moving averages as local support. However, investors should not expect an easy removal of a zero and a stable transition to the zone above $0.00001. The main obstacle for buyers lies significantly above current prices – at the level of $0.0000122, where the 200-week moving average is located, a key resistance level on the broad chart. A breakout above this line is necessary for the bullish combination of signals to turn into a full-fledged upward trend. As long as this level continues to exert strong psychological pressure on the market, it remains a challenge.
Related articles
