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?
- 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.
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.
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.
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.