A descending trendline initiated from February top($0.000035) carried the recent short-term downtrend in Shiba Inu(SHIB). The memecoin lost 40% by hitting the $0.0000206 mark. However, the recent price jump has poked the dynamic resistance indicating a potential rally to $0.000033 monthly resistance.
Key points:
- The SHIB price shows long-tail Doji candle at breached resistance
- Post retest rally could spike SHIB price by 42%
- The intraday trading volume in the Shiba Inu coin is $659.3 Million, indicating a 0.11% gain.
Source- Tradingview
On March 10th, the SHIB sellers shattered the $0.000022 weekly support, teasing to revisit the January bottom support at $0.00002. The traders spent a whole week to sustain below breached support; however, 189.7 million $SHIB burned on March 19th triggered an 8% pump.
The long bullish candle breached $0.000022 flipped resistance and descending trendline, indicating a support fakeout. This bear trap could escalate the bullish momentum and kick-start a new recovery opportunity for SHIB holders.
A retest to the breached resistance shows a long-tail rejection candle, suggesting the buyers accept it as valid support. A potential rally could soar by 42%, hitting the $0.000033 mark.
Contrary to the bullish assumption, if buyers couldn’t sustain above the descending trendline and drop the altcoin below the $0.000022.
Technical Indicator
The flattish 50 DMA could interrupt the bullish attempt to sustain $0.000022. However, the altcoin trading below crucial DMAs(50, 100, and 200) suggests the traders could find the path to least resistance downward.
The MACD indicator performs a bullish crossover in the bearish territory, providing an additional confirmation to trendline breakout.
- Resistance levels- $0.0000275, and $0.000023
- Support levels are $0.000022 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-prediction-bear-trap-bolster-a-42-recovery-for-shib/