Despite the recent surge in the crypto market, the Shiba Inu price has remained stagnant. The fact that multiple short body candles with long wicks are rejecting a clear dominant force in this memecoin suggests that a sustained rally is yet to be seen. Over the past three weeks, prices have consistently hovered between the $0.00000912 and $0.00000828 levels, indicating a narrow range formation. To move this altcoin out of its current consolidation phase, a breakout in either direction is necessary.
Interestingly, this consolidation is taking place above a long-coming support trendline, which could increase accumulation behavior from buyers. If bullish momentum rises, a successful flip above the immediate resistance of the $0.00000912 mark will add confirmation of a bullish recovery.
However, the present situation of the Shiba Inu coin trading at $0.00000863, with minimal fluctuations within a narrow range, does not lend much conviction to either the bullish or bearish case. Yet, given the positive market sentiment and the stagnant SHIB price, we cannot definitively say which party will take control of the trend.
On the flip side, if there is a breakdown below the lower trendline, the bullish thesis could be undermined. The ascending support trendline has historically acted as a crucial accumulation zone for buyers over the last eleven months. During June 2022, a bullish reversal from this support triggered a 150% surge, while a rebound on January 1st this year carried a 101% rally. As long as this lower trendline is intact, SHIB holders can maintain a bullish outlook, making a breakdown below $0.000008 less likely.
In terms of technical indicators, the daily RSI slope projects growing bullish momentum despite the sideways price action. Additionally, the 20-day EMA is acting as dynamic resistance, attempting to prolong the consolidation phase for a few more trading days.
In conclusion, the Shiba Inu coin’s current price stagnation and the ongoing consolidation phase present both opportunities and challenges for investors. While the growing bullish momentum and the support trendline provide hope for a potential trend reversal, the lack of a clear direction emphasizes the need for caution. Market participants should carefully monitor developments and conduct thorough research before making any investment decisions.
Source: Coingape
