Will SHIB Drop or Rally? Levels to Watch Closely This Week

• Shiba Inu might test $0.00001174 if it fails to maintain its designated support.
• The $0.00001770 price level is crucial for the token’s possible bullish recovery.
• Fibonacci levels suggest SHIB’s potential increase to $0.00002497 if buyers step in.

The Shiba Inu (SHIB) price analysis reveals a compelling technical setup for the upcoming week, with the potential for a sharp decline or a solid rally depending on key price levels. After filling the Fair Value Gap (FVG) at $0.00001694, the token has faced downward pressure, evident in the recent decline. The current weekly close shows a drop of 4.76%, bringing SHIB to $0.00001505. If this bearish momentum continues, we could witness a further drop to the weekly low of the first week of February, where the price touched $0.00001174. 

Source: Tradingview

Bearish Scenario: SHIB Could Dip to $0.00001174

The chart also points to a clear Fibonacci retracement zone offering critical support levels. The Fibonacci levels suggest the market could target the 23.6% retracement level at $0.00001442. A dip to this range aligns with expectations for a bearish trend if the price fails to maintain its current support. 

However, if the token stabilizes at this mark and starts moving upwards, the next obstacle could be at $0.00001770, the 50% retracement, where sellers might re-enter the market to push prices further. But if buyers push SHIB past this level, the next targets align at $0.00002020 (78.6% Fibonacci level) and possibly up to $0.00002497, the upper target of the rebound range.

Related: Shiba Inu Burn Rate Soars – Will It Trigger a Breakout?

RSI and MACD: A Mixed Outlook for SHIB’s Momentum

The Relative Strength Index currently sits at 52.43, indicating that SHIB is neither overbought nor oversold, leaving room for bullish and bearish action. On the MACD, the histogram shows a slight bearish momentum with the MACD line below the signal line, further suggesting a possible continuation of the current trend unless a reversal is confirmed by a positive price action above $0.00001770. 

The FVG  zone is important for those looking for a higher-probability trade setup. Should this zone hold, SHIB might retest the lower target around $0.00001442 before moving up. However, a failure to hold these support levels will likely cause the market to test lower levels, extending the correction further.

While the trajectory suggests some negative potential in the near term, it is essential to monitor the regions closely. A drop below $0.00001442 could signal a falling trend, while a turnaround above $0.00001770 could push SHIB toward upward territory, with targets as high as $0.00002497 in the coming weeks. Traders should monitor the 7-day close and the RSI behavior for further clues on where the coin may head. 

The post Will SHIB Drop or Rally? Levels to Watch Closely This Week appeared first on Cryptotale.