- Shiba Inu price dropped 30% before finding support at the 50 four-hour simple moving average (SMA).
- Four-hour Relative Strength Index (RSI) has released the notable overbought condition in SHIB.
- Daily active addresses trigger a double-bottom pattern, suggesting renewed interest in the rookie cryptocurrency.
Shiba Inu price had been locked in a frustrating descending channel before the brief June 11 sweep below the May 19 low, effectively clearing the weak holders and pockets of anxiety. The initial rebound gained momentum on the Coinbase Pro listing news until two crucial resistance levels, articulated on the four-hour chart, halted the rally. Now, SHIB is trying to decide whether the rip was a new beginning or a one-hit-wonder.
Shiba Inu price needs to get up and fight back if investors are to prosper
From the June 11 low to the June 15 high, Shiba Inu price successfully tested the May 19 low of $0.00000607, shattered a descending channel, overcame notable resistance at $0.00000770, briefly surpassed the apex of a multi-week symmetrical triangle at $0.00000888 and tagged the 200 four-hour SMA at $0.00000978. Furthermore, SHIB climbed approximately 80%, thereby shaking off skepticism dictated by the previous bearish price structure.
Since the June 15 high, Shiba Inu price has declined almost 30%, leaving behind the symmetrical triangle apex and the important $0.00000770 level, before achieving support at the 50 four-hour SMA at $0.00000721. The pullback to the moving average has retraced the entire Coinbase rally, and it undermines a new bullish SHIB narrative. Still, it has confirmed the key resistance 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 has been released, improving the momentum conditions for a new, spirited rally higher.
To start, Shiba Inu price needs a close above $0.00000770 and the intersection of the 200 four-hour SMA at $0.00000883 with the symmetrical triangle apex at $0.00000888. If successful, SHIB will be poised to test the June 2 high at $0.00001048, representing an 18% gain from the intersection.
Additional resistance for Shiba Inu price includes the May 20 high at $0.00001214, delivering a 36% gain from the intersection mentioned above.
SHIB/USD 4-hour chart
If SHIB fails to hold the 50 four-hour SMA at $0.00000721 on a closing basis, it would deal a blow to the new rally attempt and raise the probabilities that Shiba Inu price will revisit the May 19 low.
An improving on-chain metric for SHIB is the number of daily active addresses (DAA). Daily active addresses show the number of unique addresses involved in SHIB transactions daily. In addition, the metric indicates the daily level of crowd interaction or 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 on June 16, hinting at a renewed interest in SHIB after being in the doldrums for the last month.
SHIB Daily Active Addresses (DAA) - Santiment
SHIB investors were primed following the announcement that one of the largest cryptocurrency exchanges would be listing the altcoin to trade. However, the instant euphoria has quickly faded, and now it is a struggle for Shiba Inu price to hold a key intra-day moving average. It demonstrates the weight of an unstable cryptocurrency 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.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
US presidential election outcome could shape the future of crypto
US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).
Bitcoin ETFs beat Gold ETFs with 65% gain since launch
Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand
Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF
Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.