The deep correction in the crypto market, led by the collapse of the Bitcoin price, has pushed the Shiba Inu (SHIB) price back into bearish territory. From a technical point of view, new bull moves are far away at the moment; before that, an make-or-break price level has to be defended and a resistance level that has manifested itself since the beginning of March has to be broken.
Shiba Inu Price At Pivotal Point
But first things first. A look at the 1-day chart of Shiba Inu shows that the price has fallen to the edge of the key support level. At press time, SHIB was trading at $0.00001021, slightly above key support at $0.00001005.
As recently as early last week, a bullish picture was evolving for Shiba Inu. The price formed an ascending triangle on the 1-day chart, which is one of the continuation patterns and thus opened the chance for a more than 50% rise within the next weeks.
However, due to the market-wide downturn, SHIB broke the ascending triangle to the downside. The pattern was invalidated, so that the Shiba Inu price is now stuck again in the range between $0.00001005 and $0.00001151.
If the bulls fail to defend the range, a fall to $0.00000965 would be the most likely scenario before SHIB could possibly drop to the price level at $0.00000855. A breakdown below the trading range would be a clear break with the trend.
Holding the support is of utmost importance to start a new run towards the range high at $0.00001155.
A look at the 1-hour chart reveals that SHIB is showing slight signs of recovery. The price has initially formed a falling trend line which was broken at press time. This was followed by a re-test that is currently underway. SHIB now needs to show a significant move to the upside; at best a bounce and break above the $0.00001080 price level.
IntoTheBlock data shows that SHIB has formed major resistances both above and below. The main bid wall below Shiba Inu sits at $0.000009. Around this price level, 43,000 addresses bought around 10.24 trillion SHIB. A daily close below this resistance level could have massive bearish implications.
IntoTheBlock’s data also shows that 200 billion SHIB was bought by whales last week. As NewsBTC reported, SHIB has recently been experiencing increased interest from this cohort of investors.
This can be a clear bullish indicator. However, at the time of writing, the increased interest in SHIB from ETH whales has not yet paid off.
Featured image from Coins.ph, chart from TradingView.com
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