- Shiba Inu’s green candle sparks hope amid prolonged downtrend struggle.
- SHIB price shows signs of relief, but downtrend still intact.
- A potential base formation could signal Shiba Inu’s long-term recovery.
Shiba Inu (SHIB) recently marked a rare moment of positive price movement, printing a clean green candle after a prolonged period of downward pressure. This green candle, although not reversing the prevailing trend on its own, indicates a slight shift in market dynamics. After weeks of steady decline and little to no follow-through on previous price bounces, this brief uptick signals that the selling pressure may not be as aggressive as it once was. According to TradingView’s SHIB/USDT chart, the RSI has been hovering near oversold territory for a significant period, often a sign of late-stage downtrends rather than an early-stage reversal.
Despite the recent green candle, Shiba Inu continues to face an uphill battle. The long-term market structure remains negative, with SHIB’s price still trading below key moving averages, reflecting ongoing bearish sentiment. The overall downtrend is far from over, and the cryptocurrency remains firmly entrenched in a bear market. However, the appearance of even a slight recovery amidst the broader decline is noteworthy for traders who have been waiting for signs of a potential turnaround.
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Possible Scenarios for SHIB’s Near-Term Price Movement
Several possible scenarios could unfold as SHIB attempts to stabilize from this recent move. One likely outcome is a conservative bounce scenario, where the price attempts to target short-term moving averages and resistance levels before stalling. This would indicate a relief rally rather than a complete trend reversal. If the market environment remains neutral, SHIB may grind sideways or even experience minor gains as it consolidates.
Source: Tradingview
Alternatively, a failed bounce could emerge, with the green candle turning out to be little more than a liquidity grab. If this happens, sellers could quickly reassert control, and SHIB would likely resume its downtrend. This possibility cannot be dismissed, especially given the prevailing bearish trend seen on the daily charts. The market’s momentum could easily dissipate, leading to a sudden shift back toward selling pressure.
A Base Formation or Prolonged Stabilization
Another, though less probable, scenario is a base formation. If SHIB manages to maintain its current price levels and gradually prints higher lows, it could enter a longer accumulation phase. During this phase, the cryptocurrency might begin to recover key moving averages, indicating that the market is stabilizing. This would be a more prolonged recovery rather than a sharp breakout, marking the beginning of a possible trend reversal.
At this juncture, the outlook for SHIB remains uncertain, as buyers have yet to show full conviction. The recent uptick has introduced some hope, but it remains to be seen whether this momentum can sustain itself in the face of the broader market’s continued bearish sentiment.
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