With the recent breakdown of the descending triangle, the Shiba Inu (SHIB) price fell below the $0.0000225 mark with a downfall of 4.78% last week. The falling price is on the way to reaching $0.00002, but will the bulls reverse the trend at the psychological support, or will the memecoin reach a new low?
Key points:
- The 100 and 200-day MA provides a negative crossover
- The intraday trading volume in the Shiba Inu coin is $666.3 Million, indicating a 19.7% gain.
Source- Tradingview
On March 11th, the Shiba Inu (SHIB) sellers breached the weekly support level of $0.0000225. Moreover, this support was also part of a descending triangle pattern neckline, accelerating the ongoing selling.
The altcoin spent the next two days retesting this breached support($0.0000225). The long-tail rejection candles at this level suggest the prior support level has flipped to valid resistance.
If traders sustain below this $0.0000225 mark, the selling would gradually increase and sink the altcoin to a $0.00002 psychological level. A follow-up breakdown would open the door for retesting the January low($0.000017).
On the other hand, if buyers pushed the altcoin above the flipped resistance, it would suggest that the current breakdown was a bear trap, which could bolster the buyers to pierce the descending trendline.
This resistance trendline breakout is necessary to initiate a recovery rally in Shiba Inu.
Technical indicator
The falling crucial EMAs achieve the bearish alignment with the fresh negative crossover of the 100 and 200-day EMA. Moreover, the 20-day EMA provides a constant dynamic barrier to sabotage bullish attempts.
However, the Volatility indicator shows the VI lines maintaining the bearish alignment by avoiding the bullish crossover last week and increasing the spread.
- Resistance levels- $0.0000226, and $0.0000253
- Support levels are $0.00002 and $0.000017.
