The Shiba In(SHIB) price pivoted from the resistance trendline of the triangle pattern on April 14th. The resulting downfall has slumped the altcoin by 12.2% and pulled it below the 200-day EMA. The increasing volume activity indicates the price is likely to continue the downtrend to the bottom support trendline before initiating the next bull cycle.
Key points:
- The SHIB price action is squeezing between the converging trendline
- The flattish 200-day EMA accentuates range-bound rally in SHIB price
- The intraday trading volume in the Shiba Inu coin is $594.5 Billion, indicating a 75.8% gain.
Source- Tradingview
Under the influence of market uncertainty, the Shiba Inu(SHIB) price is coiling up inside a symmetrical triangle pattern. As days pass, the price range gets narrower between the two converging trendlines.
However, the symmetrical triangle pattern possesses the possibility to break either side of the trendline. Furthermore, the technical formation suggests the breakout would bolster a 52% directional move, calculated by adding the first swing high and swing low from the breakout point.
Amid the recent sell-off, the SHIB price reverted from the descending trendline($0.277) and tumbled by 12.2% to its current level at $0.0000242. The coin price would continue to lower, approaching the bottom support trendline.
Furthermore, the price action has narrowed to a point where it should be considered a no-trading zone. Therefore, crypto traders should wait for a genuine breakout before entering the market.
Technical indicator
The Bollinger band range getting shorter suggests the SHIB price is nearing a triangle breakout. In addition, the upper and lower bands aligned with the converging trendlines provide additional confirmation for traders.
The OBV indicator trendline with new higher highs and lows indicates a better possibility for a bullish breakout from the triangle pattern.
- Resistance levels- $0.0000277, and $0.000033
- Support levels are $0.0000215 and $0.0000172
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-triangle-breakout-hints-52-directional-move-in-shib/