The Shiba Inu price is currently suffering from uncertainty, as broader market sentiment struggles to identify the dominant force between buyers and sellers. As mentioned in a previous article, the coin price is confined within two converging trend lines, forming a symmetrical triangle pattern. This setup may present entry opportunities for interested traders.
In theory, the symmetrical triangle is a continuation pattern favoring price extension of the prior trend, which in Shiba Inu’s case is bearish. The outcome of this triangle pattern is heavily reliant on which side the prices give their breakout. With an intraday trading volume of the Shiba Inu coin at $81.7 million, a 19% decrease is evident.
For almost two weeks, the Shiba Inu price has oscillated within the triangle pattern, highlighting the indecisiveness in the market. The coin price has bounced off the pattern’s converging trend line several times, indicating that traders are strictly adhering to this setup.
At press time, the SHIB price is trading at $0.00000872, with an intraday gain of 0.23%. As the prices have nearly reached the peak of the triangle, a breakout point could be imminent.
A bearish breakdown from this trend line would resume the prior downtrend and plummet the prices by 8% to reach the psychological support level of $0.000008. Conversely, a breakout above the overhead trend line with a 4-hour candle closing may revive the bullish momentum, indicating a trend reversal. The potential rally could surge the price by 8-10% to hit the $0.00000966 mark.
The technical indicators tell a mixed story. Relative Strength Index (RSI) shows a rising slope despite sideways price action, reflecting an increase in underlying buying pressure in the market. This could signal a higher likelihood of a triangle upside breakout. Meanwhile, the Bollinger Band indicator range is significantly squeezed, which suggests a breakout trade will offer high momentum trading opportunities for market participants.
In summary, the Shiba Inu price is currently moving sideways, experiencing high volatility. Resistance levels are at $0.00000915 and $0.00000978, while support levels sit at $0.0000085 and $0.000008. As the market awaits a breakout, investors and traders should conduct comprehensive market research before participating in cryptocurrency investments to avoid personal financial loss.
Source: Coingape
