The Shiba Inu price experienced an impressive recovery in the third week, rising from a low of $0.00000645 to $0.000008. However, this psychological resistance, combined with a downsloping trendline, has created a high supply zone. In the past five days, the SHIB price demonstrated multiple failed attempts to surpass the overhead trendline, suggesting that sellers may reignite the prevailing downtrend. This comes as Shiba Inu holders are urged to move their $SHIB tokens from centralized exchanges to decentralized exchanges.
For nearly five months, the Shiba Inu price has been experiencing a steady downtrend due to the influence of a resistance trendline. During this time, prices have been rejected thrice from this dynamic resistance, indicating that sellers are actively selling during rallies. The various higher price rejection candles observed at the resistance trendline reveal that overhead supply is high, consequently triggering a significant bearish reversal. The SHIB price currently trades at $0.00000758, having breached local support of $0.00000778.
If selling continues, the coin’s price could fall by 15% and revisit the June bottom support of $0.00000645. In order for the Shiba Inu price to embark on a lasting recovery rally, it is crucial for buyers to surpass the resistance trendline. A breakout could provide an early indication of a reversal in the ongoing downtrend, creating a favorable opportunity for traders to consider long positions. Should this breakout occur, it could potentially propel the price upwards by 30%, reaching the psychological barrier of $0.00001.
The intraday trading volume of the Shiba Inu coin stands at $104.2 million, showing a 0.24% gain. However, the market is experiencing increased bearish momentum, as evidenced by the daily RSI slope diving below the 50% mark. The SHIB price also failed to sustain itself above the recently reclaimed 20-day exponential moving average (EMA), indicating the sellers have control over this memecoin. The 50-day EMA slope further acts as an additional barrier against buyers.
It’s important to note that the presented content may include personal opinions and is subject to market conditions. It’s essential to conduct thorough market research before investing in cryptocurrencies, as the author or publication holds no responsibility for personal financial losses.
Source: Coingape
