Shiba Inu Price Technicals Signal a Potential Rebound

Technical analysis suggests that Shiba Inu price may be on the verge of a strong rebound in the near term. A closer look shows that the token has slowly formed a falling wedge pattern on the three-day chart.

This pattern, which is shown in purple, is characterized by the falling and converging trendlines. A rebound normally happens whenever these lines are nearing their confluence.

Meanwhile, the Relative Strength Index (RSI) has moved to the oversold level of 30 for the first time since March last year. The last time it dropped to this level, the token rebounded by nearly 70% within weeks, reaching a high of $0.00001750.

The MACD indicator is showing signs of forming a bullish divergence pattern, which happens when it is rising gradually as the price continues falling.

Most importantly, the coin has stalled at a crucial support level where it failed to move below several times in the past. For example, it failed to drop below this price in June and October 2023.

Therefore, the most likely scenario is where the SHIB price rebounds and hits the important resistance level at $0.00001030, which is a notable level as it was the lowest swing in August 2024, April, and July last year.

On the flip side, a drop below the key support at $0.0000050 will invalidate the bullish SHIB price forecast and point to more downside over time.