Shiba Inu's price reversed the 27% gain accompanying the June 15 announcement that the SHIB coin would be listed on the Coinbase exchange in just three days, putting it in a delicate technical position. That resolved price to the downside today. Now the rookie cryptocurrency may be poised to test the June 12 low if the weakness in the cryptocurrency complex persists.
From the June 11 low to the June 15 high, SHIB price successfully tested the May 19 low of $0.00000607, shattered a descending channel, overcame exceptional 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 a price of $0.00000978. Furthermore, SHIB climbed approximately 80%, thereby shaking off skepticism dictated by the previous bearish price structure.
Since, Shiba Inu's price has declined almost 35% from the June 15 high, leaving behind the symmetrical triangle pattern apex and the temporary support level discovered at the 50 four-hour simple moving average. However, the disappointing reversal pattern has released the overbought condition displayed by the four-hour Relative Strength Index, improving the conditions for a new, spirited SHIB price rally higher should the cryptocurrency market regain a measure of support.
Considering the bearish SHIB price action over the weekend and today, investors’ trade direction should be cautious, with an eye on the May 19 low price of $0.00000607, followed by the June low of $0.00000550 as possible levels. The levels represent losses of 10% and 20%, respectively.
If both SHIB price levels fail, market speculators should acknowledge the next support level at the 138.2% Fibonacci downside extension of the May 19 bounce at $0.00000354, equating to a 48% decline from the current Shiba Inu price.
On the flip side, Shiba Inu price needs to close above the 50 four-hour moving average at a price of $0.00000760, followed by the 200 four-hour moving average at $0.00000815. The path to a meaningful SHIB rally also includes the triangle’s apex at a price of $0.000000888, representing a 30% gain from the current price.
Shiba Inu's price feels the weight of the broader market and the earlier Coinbase Pro delay, but it still holds the price correction low of $0.00000550, which not all altcoins can claim today. Moreover, the turnaround in SHIB price has not pulled the 50 four-hour SMA lower gain. Instead, the moving average is trending higher and on pace to cross the 200 four-hour SMA in a couple of days, unless the current weakness evolves into a deeper, more complex bottoming process. Lastly, the trade volume profile during this new corrective process has been contracting, suggesting that most weak holders have exited their positions.
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