The ongoing downfall in Shiba Inu price seemed to have halted after reaching a low of $0.00000833 on May 8th. As indecisiveness continues to grow among traders, the memecoin remains in a narrow range defined by two converging trendlines. In the 4-hour time frame, this range highlights the development of a symmetrical triangle pattern. Breaking free from this triangle will determine the near-future movement for the SHIB price.
Currently, the coin’s price is below the daily EMAs (20, 50, 100, and 200), which indicates a predominantly negative sentiment. The intraday trading volume for Shiba Inu stands at $180.45 million – a significant 45% increase.
Since last week, Shiba Inu’s price has been oscillating between the two converging trendlines, emphasizing the uncertainty that prevails in the cryptocurrency market. The price has bounced off these trendlines multiple times, suggesting that traders are keeping a keen eye on this chart setup.
As the prices continue to squeeze narrower within the triangle, it appears poised for a breakout on either side. If the breakout occurs on the overhead trendline, it could restore the bullish momentum and potentially send the SHIB price soaring by 12% to reach the $0.00000978 barrier.
On the other hand, breaking below the lower trendline could extend the current decline and plunge the price towards the $0.000008 mark.
Examining technical indicators can shed some light on this situation. The Relative Strength Index (RSI) from the 4-hour chart reveals a noticeable increase in bullish momentum, hinting at a higher possibility of an upside breakout. Simultaneously, the Bollinger Band indicates that the price will challenge the respective band of the BB indicator, paving the way for a momentum trading opportunity.
Taking note of the Shiba Inu price intraday levels can help us better understand the current landscape. At a spot price of $0.0000879, the prevalent trend is bearish with low volatility. Resistance is present at $0.00000915 and $0.00000978, while support can be found at $0.00000833 and $0.000008.
For cryptocurrency investors, conducting thorough market research remains essential to minimize losses, especially considering the highly volatile nature of this sector. While the mentioned content might reflect the author’s personal opinion, any investment in cryptocurrencies should be made responsibly and with an understanding of the potential risks involved.
Source: Coingape
