- 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
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
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
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
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.