On Friday, the Shiba Inu(SHIB) sellers breached the $0.000023 weekly support and the support trendline of the symmetrical triangle pattern. the follow-up retest phase should validate if sellers are ready to continue this downtrend, suggesting to reach the January bottom support at $0.00002
Despite a sloppy start in March, the ETH whales continue to accumulate the Shiba Inu token. As per an on-chain data provider WhaleStat, $SHIB ranks 7th on the top 10 coins held by Ethereum whales.
lets us study the SHIB/USD technical chart-
Key points:
- The 20 and 200-day EMA provides a negative crossover
- The intraday trading volume in the Shiba Inu token is $571.6 Million, indicating a 23.6% loss.
Source- Tradingview
On March 1st, the SHIB price turned down from the $0.000028 resistance. The altcoin lost 20% during the retracement, resisting the $0.000026 weekly support. The technical chart displayed a confluence of the mentioned support with the ascending trendline of the symmetrical triangle pattern.
Furthermore, the token price breached this shared support level, indicating that sellers plan to dump the price back down to $0.00002 psychological level.
Today, the memecoin turns green trying to retest the $0.000026 breached support. The higher price rejection candle at this level suggests the support levels have flipped to resistance. If sellers sustain below this level, the traders can expect a 10% fall.
Conversely, if buyers pushed the altcoin above the overhead flipped resistance, it would project that the current breakdown was a fakeout, and the coin price would reenter the continuation pattern.
Technical indicator
The downsloping EMAs(20, 50, and 100) indicate aggressive selling from crypto traders. Moreover, the coin chart shows a negative crossover of the 20 and 200 SMA, bolstering the triangle fallout.
However, the Relative Strength Index(42) holds above the 40% mark despite the lower low formation in price action, suggesting a slight weakness in bearish momentum.
- Resistance levels- $0.0000226, and $0.0000253
- Support levels are $0.00002 and $0.000017.
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-triangle-fallout-teases-10-freefall-in-shib-price/