Shiba Inu (SHIB) is back on the drawing board following a sudden but brief spike over the weekend to $0.00000773. The second-most popular meme coin, boasting $4.2 billion in market capitalization and ranking 16th among other cryptos, is down 1.8% to trade at $0.00000724 on Monday.
It has become nearly impossible for Shiba Inu price to rise above the seller congestion at the 21-day Exponential Moving Average (EMA) let alone the next key barrier at $0.000008. Support on the downside, has been provided by an ascending trendline, which bulls must defend at all costs to avoid it flipping into a resistance level.
Shiba Inu Price Recovery Hangs In The Balance
Although the Moving Average Convergence Divergence (MACD) indicator reveals the presence of a buy signal, a sustainable recovery to $0.00001 is uncertain. As the blue MACD line crosses above the red signal line, traders tend to consider buying into SHIB.
However, since Shiba Inu has barely sustained an uptrend since the pre-Shibarium launch rally to $0.000011, traders are not confident a trend reversal will ensue.
That said, SHIB’s reaction to the support provided by the lower ascending trendline near $0.000007 will determine where Shiba Inu price heads to next. Holding this support in position would affirm the bullish grip and encourage traders to stick to longing SHIB and eventually result in a trend reversal targeting $0.000008 and $0.00001 price points.
Investors will prefer to capitulate as traders switch to shorting SHIB if support at $0.000007 weakens. The Relative Strength Index (RSI) already shows that bulls lack the strength to keep the uptrend intact.
A sudden sell-off in SHIB may not leave any stones unturned as $0.000007 turns into a resistance level. The last time Shiba Inu price dropped below a multi-month trendline at $0.00000815, sellers reaffirmed their presence, taking the reins with losses intensifying to $0.000007.
Shiba Inu’s technical outlook sustains the negative sentiments in shorter timeframes bolstered by an elaborate sell signal from the MACD. The position of the momentum indicator below the mean line (0.00) implies that sellers have the upper hand.
The SuperTrend indicator in the same chart has just flipped above the price to show that a bearish outcome is highly likely. However, if bulls manage to weaken resistance at $0.0000075, more buyers may join the market to nurture the rally to $0.000008 through to $0.00001. Price action below $0.0000072 may reinforce the bearish grip and trigger another sell-off into the $0.000006 range.
Meanwhile, Dogecoin, the largest meme coin, is still a better performer compared to Shiba Inu price, as observed using Coingape’s latest analysis tool. Based on the chart, investing the same amount in DOGE and SHIB and leaving it for a year would have yielded more in the former than the latter.
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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.
