The SHIB price has surged 62% from the February 3rd low(0.00002), in the last five days. This recent rally could be provoked by a couple of positive news for Shiba Inu, like SHIB-Themed Restaurant Launching In Partnership With Fast Food Chain Welly’s, and the recent tweet for Shibarium(layer-2 Blockchain) to go live soon.
Furthermore, the buyers have recently knocked out $0.00003 resistance, providing a stepping stone for further rally.
Key technical points
- The SHIB price shows higher price rejection above the $0.3 mark
- The intraday trading volume in SHIBA/USD is $5.4 Billion, indicating a 70% gain.
Source- Tradingview
The SHIB price was resonating in a falling wedge pattern for the last three months. On February 6th, the SHIB price finally escaped the falling wedge pattern with a bullish breakout, suggesting the correction phase has ended.
Furthermore, the sustained buying in the SHIB/USD pair immediately poked the immediate resistance of $0.0000, providing a long entry opportunity. However, the price is currently in a retest phase, and the price rejection in the last two daily candles indicates the bears are defending this mark.
The recent recovery has reclaimed crucial DMAs(20, 50, and 200), indicating the bulls obtained a significant edge. However, the 100 DMA stands as a firm resistance that could slide the altcoin to a lower level.
Following a bullish crossover in the negative territory, the MACD indicator lines are preparing to plunge above the neutral line(0.0). The rising greens bar in the histogram accentuates the increasing bullish momentum.
SHIB/USD: 4-hour Chart
Source-Tradingview
If SHIB bulls sustain above the $0.00003 mark, it would indicate the resistance has flipped to support, and the altcoin could continue to sail north. The crypto traders can expect the next significant resistance 25% up at $0.00004.
Contrary to this assumption, if sellers rejected the SHIB price from its current level, the alt would sink back to $0.000025 support.
- Resistance levels- $0.00004, $0.000048
- Support levels are $0.00003 and $0.000025.
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/shiba-inu-price-breaks-resistance-next-target-00004/