Shiba Inu price eyes 9% bounce, but SHIB bulls confronted by raft of obstacles

Shiba Inu price has presented a technical pattern that suggests indecision. However, it could be targeting a 9% uptick as it nears a critical turning point. The canine-themed token is hovering around a crucial support level, and if it holds, SHIB could see a short-term recovery.

Shiba Inu price presents bottom signal at critical level

Shiba Inu price is sealed within a symmetrical triangle pattern as indecision mounts. Currently, SHIB is at the lower boundary of the governing chart pattern, which acts as a critical line of defense for the token.

Shiba Inu price would need to continue to hold above the downside trend line of the triangle and the 38.2% Fibonacci extension level at $0.00000621 for any hope of any upside potential for SHIB.

The bulls could target the upper boundary of the prevailing chart pattern at $0.00000674, near the 78.6% Fibonacci extension level. The Momentum Reversal Indicator (MRI) presented an MRI bottom signal as Shiba Inu price tagged the triangle’s lower boundary, adding credence to the bullish thesis.

However, before SHIB could unravel a recovery, there are a number of obstacles awaiting Shiba Inu price. The first two levels of resistance appear in quite close proximity, which are the 50 four-hour Simple Moving Average (SMA) and the 100 four-hour SMA.

SHIB/USDT 4-hour chart

Clearing the aforementioned resistance levels could see Shiba Inu price tag the 61.8% Fibonacci extension level at $0.00000653. Only if SHIB manages to close above this level, can the canine-themed token target the 78.6% Fibonacci extension level at $0.00000675.

If the potential uptrend retreats, Shiba Inu price could be at risk of a 19% decline given the governing chart pattern. SHIB should be able to discover meaningful support at the 27.2% Fibonacci extension level at $0.00000606 before falling into the demand zone that extends from $0.00000582 to $0.00000606.

A 19% drop would only materialize should Shiba Inu price lose the aforementioned levels of support.