Shiba Inu price uptrend encountered a significant seller congestion zone at $0.0000096, forcing bulls to abandon the push for gains above $0.00001. Meanwhile, the double-bottom pattern reinforces the bullish grip.
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The meme coin hype is gradually making its way back into the industry bolstered by cumulative gains to the tune of 600% in 24 hours, according to market data as presented by CoinMarketCap. Shiba Inu (SHIB), the second-largest meme coin with $5.2 billion in market cap and trading at $0.00000873, climbed to $0.0000096 last week before trimming some of its gains.
Shiba Inu Price Prediction: SHIB Flaunts Double-Bottom Pattern
Shiba Inu has been trending higher from the time it bounced off support at $0.00000668 on October 20. The uptrend was gradual and lock-step at first with resistance at $0.000008 standing in the way.
A break above this hurdle in early November, reinforced the bullish grip, paving the way for the second phase of the recovery to $0.00001. This bullish leg extended above $0.000009 but a waning momentum saw Shiba Inu stall at $0.0000096, introducing a significant level of risk.
Shiba Inu price is in the process of validating a double-bottom pattern likely to result in an impressive 46% move from the breakout point to $0.0000145. This pattern formed toward the end of a downtrend. It signifies that selling pressure has faded to give way for bulls to take the reins.
Resistance is expected to delay the breakout at the dotted neckline. If successfully broken, a breakout will follow accompanied by increasing trading volume.
Traders are advised to place their buy orders slightly above the neckline resistance with a stop loss marginally below the same level. The massive increase in trading volume creates volatility and momentum for the climb, whose target is equal to the height of the pattern.
The Moving Average Convergence Divergence (MACD) indicator further reinforces the growing bullish grip with a buy signal. On top of the buy signal, the momentum indicator’s movement above the neutral area and further into the positive region, marks a change in SHIB’s trajectory.
A bullish cross on the same daily chart is another technical affirmation. This pattern reinforces the bullish narrative, validating a long-term outlook. It manifests when a short-term MA crosses above a long-term MA.
In SHIB’s case, the 50-day Exponential Moving Average (EMA) is pushing to flip above the 100-day EMA.
Despite bulls having a stronger case, traders would be looking for certain price actions before buying or selling SHIB this week. Those interested in longing Shiba Inu may want to wait until the ongoing gains trimming subside and give way to consolidation followed by a recovery above $0.000009. Such a move gives buyers time to seek more exposure while creating the necessary momentum for a massive rally past $0.00001.
On the other hand, Shiba Inu decline below the 200-day EMA (purple) at $0.00000837 might change the trajectory downwards. Although it would be prudent to anticipate a rebound at $0.000008 support, we cannot immediately rule out the impact of panic selling. Other support areas to consider are $0.000007 and $0.00000668.
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.