The range-bound movement in SHIB price has dropped to the support trendline of the symmetrical triangle pattern. The buyers preparing for a bullish reversal would face a steeper trendline before challenging the pattern’s key resistance.
Key technical points:
- The 200-day DMA has flipped to valid resistance
- The intraday trading volume in the Shiba Inu coin is $833.9 Million, indicating a 15.11% loss
Source- Tradingview
Over the past two months, the Shiba Inu(SHIB) has resonated in a symmetrical triangle pattern. The recent bull cycle from the $0.000002 support drove the price by 17.5%, reaching the immediate resistance at $0.0000027.
However, the buyers couldn’t overcome the shared resistance of $0.000027 and 200 DMA and sank the SHIB price back to bottom support(0.00002). The altcoin turns green today with a 5% gain, suggesting the buyers’ interest at this dip.
However, a bearish alignment among the downsloping crucial EMAs(20, 50, and 100) indicates the sellers have the upper hand. Moreover, the stochastic-RSI shows a bearish crossover among the K and D lines, projecting a sell signal.
SHIB price faces dynamic resistance from descending trendline
Source-tradingview
The recent fall showed three consecutive red candles backed by decreasing volume activity. This indicated weakness in the selling momentum and signaled a possible reversal from the bottom support($0.00002).
The altcoin will retest the steeper resistance trendline if the buyers bounce back from this support. A breakout and closing above this dynamic resistance would accelerate the buying pressure and spike the price to the pattern’s trendline.
On a contrary note, if sellers pull the SHIB price below $0.000022, the altcoin would retest the January low support at $0.00002.
- Resistance levels- $0.000025, and $0.000027
- Support levels are $0.000023 and $0.00002.
Disclaimer
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.
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Source: https://coingape.com/markets/shib-price-analysis-descending-trendline-breakout-is-must-to-revert-the-ongoing-downfall/