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Despite the increasing FUD in the crypto market, the Shiba Inu price showed a significant recovery in early August. This recent bullish swing formed a breakout from the resistance trendline of the rising wedge pattern. An upside breakout of this pattern is rare and signals a strong buying signal for traders. Is this setup enough to invest in SHIB?
Also Read: New Whale Scoops 4 Trillion Shiba Inu (SHIB) Ahead Of Shibarium Launch
Shiba Inu Price Daily Chart:
- The SHIB price retraced to potential support for a bounce back to higher levels.
- A bullish crossover between the 20-and-100-day EMA would attract more buyers in the market
- The intraday trading volume of the Shiba Inu coin is $261.2 Million, showing a 38% loss.
Source- Tradingview
On August 5th, the Shiba Inu price offered a high momentum breakout from the resistance trendline of a rising wedge pattern. In theory, this pattern often results in a significant downfall but in a rare case, it breaks the above resistance as a signal for increased buying pressure.
This breakout rally reached a high of $0.0000105 and reverted immediately. In the last two days, the coin price tumbled 11-12% and retested the breached resistance for potential support. By press time, the Shiba Inu price trades at $0.00000895, trying to sustain above the aforementioned trendline.
If the memecoin shows demand pressure from the rising trendline, the buyers may extend the price 18% higher to reach $0.0000105, followed by $0.0000119.
Can SHIB Price Revist $0.0000065?
If the sellers obtained the upper hand in the midst of increased uncertainty, the Shiba Inu price could see a breakdown below the flipped trendline. This breakdown would invalidate the bullish thesis and plunge the coin price to 6.5% to $0.0000085 to test the lower trendline of the wedge pattern.
- Average Directional Index: The daily ADX slope at 32% indicates the buyers’ enough ave strength
- Exponential Moving Average: The daily EMAs(20, 50, and 100) could offer additional support to coin buyers.
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.
