Published 9 hours ago
Amid the ongoing consolidation in the crypto market, the SHIB price reflected its range rally with the formation of an inverted head and shoulder pattern. Today, the coin price witnessed a strong inflow which breached the neckline resistance trendline. Sustainability above this level, the coin buyers would obtain an additional footing to drive the recovery rally high.
Key points:
- The SHIB market value has appreciated 20% since last week
- The daily shows high wick rejection near the $0.1187
- The intraday trading volume of the Shiba Inu coin is 713 Million, indicating a 41% gain.
Source- Tradingview
The SHIB/USDT price chart projected a downtrend under the influence of a bearish trendline accounting for a drop from $0.0000119 to $0.00000756 in June. During the bear market, the prices plunged under the crucial 50 and 20-day EMAs, while they had a negative alignment.
However, the buyers planned a scheme to reverse the price trend with an inverted head and shoulder pattern, with the trendline acting as the neckline. The pattern forms with the help of $0.00000756 and $0.00000984 support levels providing crucial reversal spots.
Today the SHIB prices jumped by 8.57% to beat the resistance trendline resulting in the bullish breakout of the prices pattern. Hence, if the daily candle manages to close above the $0.0000118 mark, investors can expect the rally first to hit $0.00001375.
However, a retest to this broken trendline can result in a dip to the $0.0000118 mark.
Conversely, if sellers pull the altcoin below the neckline, the ongoing consolidation would continue for a few more sessions.
Technical indicator
Vortex indicator: a wide gap between the VI+ and VI- slopes following a bullish crossover, accentuating growth in bullish momentum. This bullish alignment should encourage buyers to sustain the ongoing recovery.
RSI indicator: The daily-RSI slope jumps above the 20-SMA slope and rises higher in bullish territory, indicating the positive sentiment is returning to SHIB price.
- Resistance levels- $0.0000118, and $0.0000137
- Support levels : $0.00000984 and $0.00000756
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/shib-price-analysis-reversal-pattern-may-extend-recovery-rally-by-16/