During the last week of 2021, the SHIB token price hinted to start a recovery rally when the price gave a strong breakout from the $0.0000371 resistance. However, the price couldn’t hold above this level for long and dropped below the breakout point. Triggered by this bear trap, the price is falling back to $0.00003 support.
Key technical points:
- SHIB token bulls lost the 100-EMA support
- The 24-hour trading volume in the Shiba Inu token is $163.1 Million, indicating a 26.19% loss.
Source-Tradingview
Previously when we covered an article on the Shiba Inu token on December 25th, this pair presented a tempting long trade opportunity when the price breached the $0.0000379 resistance. However, the intense selling pressure from bears wouldn’t let the price sustain above this level, resulting in a fakeout.
On December 28th, the token confirmed this bear by displaying a huge bearish candle dropping below the breakout point. The price is now slowly and steadily moving to the $0.00003 psychological support.
As per the crucial EMAs(20, 50, 100, and 200), the SHIB token price is still bullish as the price is moving above the 200 EMA. This extended correction phase has engulfed the other EMAs lines.
The daily Relative Strength Index (42) has recently slipped below the neutral and 20-SMA, indicating a bearish price sentiment.
Shiba Inu Token Seems Susceptible To Trading Traps
Source- Tradingview
The SHIB token technical chart displayed the $0.00003791 and $0.00003 as important price action levels, which could provide a good trading opportunity. However, the token price has already provided a fakeout from both these levels, punishing the crypto that didn’t maintain a proper stop loss.
Therefore, traders looking for a new position in this token should wait for the price to sustain those levels and input a logical stop loss.
The traditional pivot level suggests the overhead resistance level for SHIB token price is at $0.00003535, followed by $0.000038. As for the opposite end, the support levels can be expected from $0.000031 and $0.000028.
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/shib-price-analysis-shiba-inu-token-would-soon-re-established-the-0-00003-crucial-support/