• Shiba Inu price refuses to resolve the descending channel of the last nine days.
  • SHIBA quietly approaching the May 19 low at $0.00000607.
  • A resurgence of upside momentum will strike formidable resistance at the earlier symmetrical triangle apex level.

Shiba Inu price has been sealed in a descending channel since June 3. Therefore, unless SHIB can overcome the channel’s magnet effect, it will test the May 19 low and possibly extend the decline that originated on May 10.

Shiba Inu price decouples from the bellwether cryptocurrency

Since June 3, Shiba Inu price has trended lower in a descending channel reaching a 40% decline for SHIB on June 8. However, it is interesting to note that the volume underpinning the descending channel has been sporadic, revealing there is no stampede for the exits, despite the weakness. In fact, today’s four-hour volume bars barely exist.

For some time, the limited SHIB volume validated the view that the soft descent was a function of the broader weakness in the cryptocurrency complex. Still, the SHIB correlation coefficient with BTC has quickly turned negative over the past two days. The negative correlation hints that Shiba Inu price has decoupled from the broader market and is driven by token-specific issues or by the governing descending channel.

It will take a compelling upside release from the descending channel to drown the skepticism that the current Shiba Inu price structure provokes. Immediate support materializes at the May 19 low of $0.00000607, followed by the channel’s midline, currently at $0.00000572. After that, a deeper decline could reach the channel’s lower boundary at $0.00000485, realizing a 25% decline from the current price.

SHIB/USD 4-hour chart

SHIB/USD 4-hour chart

If the digital asset does unlock from the channel, there is no immediate resistance for Shiba Inu price until the symmetrical triangle apex line at $0.00000757. The level provided support in May and created resistance earlier this month. A successful close above the line could extend the SHIB rally to the 50 four-hour simple moving average (SMA) at $0.00000788. 

For aggressive market operators, look for a close above the average to target a rally to the June 2 high of $0.00001048, generating a 60% gain from the current price. 

A heightened level of uncertainty accompanies rookie cryptocurrencies as price history is too limited to define an outlook confidently. Instead, investors are better served to realize that they are the creation of social media hype and the resulting fear of missing (FOMO) that convinces retail investors of staggering returns.

Interestingly, Google Trends shows that SHIB search interest is 10% of the May 11 peak and is resting at the lowest level since the peak. Thus, it is difficult to rally a new cryptocurrency without retail interest because institutions are not buying SHIB.


SHIB Search Interest - Google Trends

SHIB Search Interest - Google Trends

Shiba Inu price sits a pivotal moment in its short history. How it resolves the SHIB descending channel and manages the May 19 low will dictate the price structure for many weeks.


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


Recommended Content

Editors’ Picks

US presidential election outcome could shape the future of crypto

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).

More Cryptocurrencies News
Bitcoin ETFs beat Gold ETFs with 65% gain since launch

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.

More Bitcoin News
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

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.

More Ripple News
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

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.

More Ethereum News
Bitcoin: New all-time high at $78,900 looks feasible

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.

Read full analysis
Best Forex Brokers with Low Spreads

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.

Read More

BTC

ETH

XRP