Shiba Inu's price had been locked in a frustrating descending channel pattern before the brief June 11 sweep below the May 19 price low, effectively clearing the weak holders and pockets of anxiety. The initial SHIB rebound gained momentum on the Coinbase Pro listing news until two crucial resistance, articulated on the four-hour chart, halted the rally. Now, SHIB price is trying to decide whether the rip was a new beginning or a one-hit-wonder.
From the June 11 low to the June 15 high, Shiba Inu successfully tested the May 19 low of $0.00000607, shattered a descending channel pattern, overcame a notable resistance level at $0.00000770, briefly surpassed the apex of a multi-week symmetrical triangle pattern at $0.00000888 and tagged the 200 four-hour SMA at $0.00000978. Furthermore, SHIB's price climbed approximately 80%, thereby shaking off skepticism dictated by the previous bearish price structure.
Since the June 15 high, Shiba Inu's price has declined almost 30%, leaving behind the symmetrical triangle pattern apex and the important $0.00000770 level, before achieving support level at the 50 four-hour SMA at $0.00000721. The pullback to the moving average has retraced the entire Coinbase news rally, and it undermines a new bullish Shiba narrative. Still, it has confirmed the key resistance support levels that may impede a complete turn from the price awkwardness that has reigned for the last month.
The overbought condition signaled by the four-hour RSI chart has been released, improving the momentum conditions for a new, spirited rally higher.
To start, Shiba Inu's price needs a close above the price of $0.00000770 and the intersection of the 200 four-hour SMA at $0.00000883 with the symmetrical triangle pattern apex at $0.00000888. If successful, SHIB will be poised to test the June 2 high at a price of $0.00001048, representing an 18% gain from the intersection.
Additional resistance level for Shiba Inu price includes the May 20 high at $0.00001214, delivering a 36% gain from the intersection mentioned above.
If SHIB price fails to hold the 50 four-hour SMA level at $0.00000721 on a closing basis, it would deal a blow to the new rally attempt and raise the probabilities that Shiba Inu will revisit the May 19 low.
An improving on-chain metric for Shiba is the number of daily active addresses. Daily active addresses show the number of unique addresses involved in Shiba Inu transactions daily. In addition, the metric indicates the daily level of crowd speculation with the digital asset. Higher readings indicate investor interest and the opposite with lower readings.
The 7-day average of the metric triggered a double bottom low on June 16, hinting at a renewed interest in SHIB price after being in the doldrums for the last month.
SHIB investors were primed following the announcement that one of the largest cryptocurrency exchanges Coinbase would be listing the altcoin to trade. However, the instant euphoria has quickly faded, and now it is a struggle for Shiba Inu's price to hold a key intra-day moving average. It demonstrates the weight of an unstable crypto market. Still, more importantly, it reflects the challenges of an experimental altcoin trying to make the turn higher after a significant decline and frustrating bottoming process.
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