• 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

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 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. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: XRP in a league of its own as BTC and ETH  pull back

Bitcoin price is currently showing signs of retracement after a second attempt to rally higher. Ethereum price tried following in BTC’s footsteps but lacked momentum. On the other hand, Ripple price is paving its way, but it might fall in line soon.

More Cryptocurrencies News

Shiba Inu exposes risk of 20% collapse

Shiba Inu price action has been uneventful despite the recent crypto market rally led by Bitcoin. SHIB continues to consolidate as it moves sideways, and an indecisive technical pattern has emerged.

More Shiba Inu News

Polygon looks to double in market value

MATIC price is hovering above a crucial support level at $0.996, expecting a break above. A 13% retracement to $0.855 seems likely if the selling pressure increases. A 100% upswing to $1.727 is on the cards for Polygon.

More Polygon News

Flippening becomes more likely as ETH trade volume growth exceeds BTC in first half of 2021

The growth in the trade volume of Ethereum exceeded that of Bitcoin so far in 2021, according to a report from Coinbase Global Inc. Increasing popularity of decentralized finance and the rise of scaling solutions are among key factors contributing to Ethereum's performance.

More Ethereum News


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast