The SHIB price experienced a decisive breakdown from the support trendline of a symmetrical triangle pattern on June 5th, indicating a potential significant downfall for this memecoin. With a one-year consolidation in the seller’s favor and the negative sentiment in the market, a sharp recovery appears less likely for the near future. A recent movement of4 trillion SHIB, worth $32 million, to Binance added to the concerns regarding the price.
Analyzing the Shiba Inu price daily chart, demand pressure at the $0.00000572 support level could hint at a possible bullish reversal in the SHIB price. The daily RSI slope in the oversold region indicates that more buyers might enter at discounted prices. Meanwhile, the intraday trading volume of the Shiba Inu coin stands at $120.5 million, showing a 68% loss.
From the triangle breakdown point of $0.00000824, the Shiba Inu price tumbled 33% to reach a two-year low at $0.00000543. However, the aggressive selling on June 10th was quickly countered by buyers, who managed to recover the losses experienced during the day. The long tail rejection candle at the $0.00000572 support level indicates that buyers are accumulating at this discounted price, potentially leading to a minor pullback.
Currently, the SHIB price is trading at $0.0000066, with an intraday loss of 2.48%. If the demand pressure from bottom support increases, the SHIB price could rise by 17% to retest the breached $0.00000778 support as potential resistance.
Although the SHIB price experienced a sudden downfall, it was able to sustain itself above the $0.00000572 level. Despite the strong bearish scenario, the coin price remains above the mentioned level, suggesting that breaking below it would be difficult for sellers. Therefore, the retest to the $0.00000572 support could offer an opportunity to accumulate SHIB.
In terms of technical indicators, dynamic resistance from the 20-day Exponential Moving Average (EMA) will signal the first sign of bullish recovery if breached. The daily Relative Strength Index (RSI) slope plunge into the oversold region also indicates unstable aggressive selling, which could trigger a quick rebound.
While the SHIB price outlook remains uncertain, it is essential for investors to conduct thorough market research before investing in cryptocurrencies. As with any investment, maintaining a balanced perspective and considering both the potential risks and rewards is crucial to making informed decisions.
Source: Coingape
