Shiba Inu price recently received a significant boost as part of the latest recovery seen in market leaders Bitcoin and Ethereum. This memecoin has been on an upward trajectory for ten consecutive days, showcasing a 23.55% growth as prices soared from $0.00000645 support to the current price of $0.00000797. The bullish rally, backed by increasing volume, indicates a strong conviction from traders to drive the price higher. However, one must wonder if the Shiba Inu price can sustain this bullish momentum or if there is an impending correction wave on the horizon.
With the recent upswing seen in the daily chart, the Shiba Inu price has successfully reclaimed a long-standing resistance trendline. This dynamic resistance represents the ongoing downtrend in the memecoin, serving as an important pivotal point for traders. On June 22nd, the daily chart demonstrated a long-wick rejection from the downsloping trendline, suggesting that sellers are still active at this resistance. Should the coin price continue to experience supply pressure in the coming days, the SHIB price may likely challenge the $0.0000075 immediate support, possibly invoking further decline.
A breakdown below the aforementioned $0.0000075 support level could increase selling pressure, potentially pushing the prices back down to $0.000007. For the Shiba Inu price to kick off a sustained recovery rally, buyers need to initiate a bullish breakout from the overhead resistance trendline. A successful breakout could signify an early sign of trend reversal, providing traders with an opportunity to go long. This post-breakout rally could propel the price 21% higher, potentially reaching the $0.00001 psychological barrier.
Several technical indicators suggest varying outcomes. The Relative Strength Index (RSI), for example, predicts that a breakout above 60% would indicate high momentum buying among market participants. On the other hand, the Bollinger Band’s upper limit could provide additional resistance for buyers, potentially bolstering a potential downfall.
In summary, the recent Shiba Inu price surge shows promise, but risks are still at play. A decisive breakout from the overhead resistance trendline will be key to initiating a recovery rally. Conversely, if supply pressure persists, a correction wave may be imminent. As with any investment, particularly in the volatile world of cryptocurrencies, thorough market research and due diligence are essential for protecting personal financial interests.
Source: Coingape
