On June 10th, the Shiba Inu price experienced a massive sell-off, recording a 30% loss and reaching a low of $0.00000543. Despite this, the buyers made a strong comeback from the $0.00000555 support level and recovered half of the day’s losses. The long-wick rejection illustrated on the daily chart reveals the high demand pressure at this support level. The question then arises: Can this support help restore the bullish momentum and drive the price higher, or will the current downtrend prevail?
The $0.0000055 level has emerged as a substantial accumulation zone for buyers. For a significant recovery to occur, the Shiba Inu price will need to break out above the downsloping trendline. An impressive intraday trading volume of $94.5 million has been observed for the Shiba Inu coin, reflecting a 22% gain.
The Shiba Inu price saw a remarkable recovery in mid-June amid the broader crypto market’s rallied reflection. From June 15th’s low at $0.0000065, the meme coin skyrocketed by 12%, reaching the nearest resistance at $0.00000742-$0.00000777. This price recovery, however, is likely stimulated by an increase in buying pressure from bulls acquiring at discounted rates. A sudden resurgence like this is improbable, meaning the SHIB price could drop lower to boost the bullish momentum.
Moreover, a higher price rejection at $0.00000742 signifies that the overhead supply pressure remains strong. With the crypto market’s increasing uncertainty, the Shiba Inu price may undergo a sideways trend in the near future. During this consolidation period, the price is likely to encounter the downsloping resistance trendline. This dynamic resistance is the driving force behind the current SHIB price downfall. Consequently, traders should wait for a breakout before considering a long position.
Key technical indicators to watch include the Moving Average Convergence Divergence (MACD) and the Exponential Moving Average (EMA). A bullish crossover between the MACD (blue) and the signal (orange) line could boost buying momentum, helping buyers to retest the overhead trendline. On the other hand, the 20-day and 50-day EMAs could act as strong dynamic resistance against buyers.
The market’s future performance remains uncertain. Therefore, ensure thorough market research before investing in cryptocurrencies. It is crucial to note that the author’s personal opinions may not reflect market conditions, and neither the author nor the publication can be held responsible for any personal financial losses.
Source: Coingape
