- 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.
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