In the latest sell-off in the crypto market, the Shiba Inu coin price tried to escape the ongoing consolidation with the breakdown of $0.0000082 support. However, the buyers actively defended this range support and returned the price higher immediately. Furthermore, with signs of reversal from the support, the ongoing consolidation phase is expected to extend for a few more trading sessions.
Key points from Shiba Inu coin analysis
- Shiba Inu coin price retraced from $0.0000082 with a morning star light pattern. This pattern undermines the previous downfall and creates a sense of recovery.
- The bullish reversal encourages buyers for a 10% price rally to reach the $0.0000096 mark.
- The intraday trading volume for the Shiba Inu coin is $204 million, indicating a loss of 13.5%.
Source- Trading view
Amidst the latest recovery cycle in the crypto market, the Shiba Inu coin price stopped its earlier decline with support at $0.0000082. As a result, this memecoin turned sideways and created a rectangle area between the $0.00000966 and $0.0000084 mark.
This comfort phase in an established trend usually marks a short pause period before the price continues on the prevailing path. The coin price has tested both the mentioned level of the series several times, indicating that traders are reacting to this pattern.
Furthermore, with the recent selloff in the crypto market, the price plunged back to the $0.0000082 bottom support. However, on December 17th, the Shibburn community burned a total of 1,500,000 SHIB tokens in one transaction, reducing a significant portion of the total supply.
This recent burning activity must trigger the 7% jump today, rebounding the SHIB price from the $0.0000082 support. A bullish reversal from this support sent the coin price up another 10% as it rises back to overhead resistance.
Thus, the Shiba Inu coin is expected to continue its consolidation phase for a few more trading sessions.
That said, the price breakout from both levels of the series will trigger a directional rally in the SHIB. A bullish breakout from the $0.00000966 resistance mat helps buyers reach the $0.0000105 mark.
Conversely, a break from the $0.0000082 support would extend the previous decline to the $0.0000075 support.
Relative strength index: Amid a sideways price action, the daily RSI slope teetering below the neutral line indicated that the sellers have the upper hand, which also increases the chance of a breakdown at $0.0000082.
EMA: The 20- and 50-day EAMs offer dynamic resistance to the Shiba Inu coin price, trying to limit bullish growth.
- Resistance levels – $0.0000096 and $0.0000105
- Support levels: $0.0000082 and $0.0000075
The content presented may include the author’s personal opinion and is subject to market conditions. Do market research before investing in cryptocurrencies. The author or publication has no responsibility for your personal financial loss.