Share:
  • Shiba Inu price has collapsed into a descending parallel channel as it continues to lack decisiveness and commitment. 
  • While technical indicators are suggesting a trend reversal, the upside potential for SHIB is restricted.
  • Possible bullish targets for Shiba Inu seem to be out of reach until it breaks above critical levels of resistance. 

Shiba Inu price has been sealed in a declining consolidation pattern that started on July 6. A technical indicator has presented a buy signal at a crucial level of support, pointing to a potential short-term recovery.

Shiba Inu price struggles to thrive on buy signal

Shiba Inu price broke out of a declining resistance trend line on June 29 that has imprisoned SHIB for 41 days. 

Shiba Inu quickly traded this trend line into support, however, SHIB lost this area of defense on July 13 when a red candlestick closed under this level. 

On the 12-hour chart, Shiba Inu price has been trapped within descending parallel channel, consistently forming lower lows and lower highs. 

While the prevailing direction of this chart pattern suggests that SHIB price could continue to move lower, the Momentum Reversal Indicator flashed a buy signal. Adding credence to the recovery thesis is the Relative Strength Index, which showed that Shiba Inu was oversold on July 16.

Shiba Inu price

SHIB/USDT 12-hour chart

However, an aim at recovery could present limited upside potential for Shiba Inu price, as it faces multiple obstacles ahead. SHIB must climb above the aforementioned declining resistance trend line to be able to reverse the period of underperformance.

Should Shiba Inu witness accelerated interest, SHIB could aim at the next target at the 27.2% Fibonacci extension level, coinciding with the 20 twelve-hour Simple Moving Average (SMA) at $0.00000750. 

Investors should note that bigger aspirations beyond this level are unlikely in the near term, as Shiba Inu price is met with a resistance line given by the MRI, corresponding to the 50 and 100 twelve-hour SMAs at $0.00000776.

On the contrary, if SHIB bears continue to take control over the market, Shiba Inu price could slip below the middle boundary of the chart pattern, which acts as the first line of defense. 

Should Shiba Inu price witness a spike in selling pressure, SHIB could find itself falling into the demand zone that ranges from $0.00000560 to $0.00000634 once again.

 


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.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Bitcoin tags $60,000 for the first time in more than two years

Bitcoin tags $60,000 for the first time in more than two years

Bitcoin hit $60,000 after more than two years below this level. BTC liquidations have surpassed $277 million in the last 24 hours. This massive rally in the pioneer cryptocurrency could be attributed to the spot ETF approval.

More Bitcoin News

Arbitrum price resumes rally with Web3 gameathon plan for March

Arbitrum price resumes rally with Web3 gameathon plan for March

Arbitrum, an Ethereum Layer 2 scaling solution, has announced an event for Web3 gaming. The event is likely to attract community members, delegates and Web3 gamers. This could positively influence Arbitrum adoption and is likely to boost ARB gains. 

More Arbitrum News

Ethereum price hits new yearly high at $3,369 as staked Ether rises to 26%

Ethereum price hits new yearly high at $3,369 as staked Ether rises to 26%

Ethereum price has climbed to a new 2024 high of $3,369 on Wednesday. Bitcoin’s rally to $59,000 and the upcoming Dencun upgrade activation on mainnet have likely catalyzed Ethereum’s price gains. 

More Ethereum News

XRP climbs to $0.58 as SEC pushes for deadline extension in Ripple lawsuit

XRP climbs to $0.58 as SEC pushes for deadline extension in Ripple lawsuit

XRP price rallied on Wednesday in response to the Securities and Exchange Commission’s (SEC) push to delay the remedies briefing deadline in its lawsuit against the payment remittance firm. 

More Ripple News

Bitcoin: BTC likely to correct to $50,000 soon

Bitcoin: BTC likely to correct to $50,000 soon

Bitcoin price has formed a potential top signal that forecasts a sell-off. The weekly chart also points to a bearish divergence, which adds credence to the bearish outlook. Investors can expect BTC to consolidate between the $52,062 to $45,160 levels.

Read full analysis

BTC

ETH

XRP