Multiple levels Defend $0.0000125 Support; Good Time To Buy SHIB?

The SHIB/USDT pair wavered in an inverted head and shoulder pattern from Mid May to August. The memecoin showed multiple failed attempts to breach the $0.0000125 neckline resistance during these three months, validating it as a strong resistance zone. However, on August 12th, the SHIB price gave a bullish breakout from this neckline resistance. 

Key points from SHIB analysis:

• The SHIB chart indicates the support confluence at $0.0000125 could replenish the bullish momentum
• A breakdown below $0.0000125 support would invalidate the bullish thesis
• The intraday trading volume of the Shiba Inu coin is $885.6 Million, indicating an 11.62% loss.

Source- Tradingview

The post-retest rally from pattern breakout aligned with the upcoming burn event this month brought massive buying pressure in the market. As a result, the SHIB price surged 34% and hit the $0.000017 mark on August 14th.

However, in response to the profit booking from short-term traders, the price reverted immediately. Moreover, amid the correction phase in the crypto market and the US Fed news of increasing interest rate in September, the altcoin plugged back to $0.0000125.

The SHIB price dropped 25% in the past five days and retested the breached neckline resistance. Moreover, the $0.0000125 support aligned with the 0.5 Fibonacci retracement level and 50-day EMA, indicating a higher area of interest for potential buyers.

The lower price rejection candle on August 19th reflects the buyers are wrestling for trend control. If the SHIB price sustains above the confluence support, the resulting rally may surpass the $0.000017 mark and hit the $0.00002 psychological level.

On a contrary note, if the overall market continues to face selling pressure, the SHIB price may lose the $0.0000125 support and will be threatened to reach the $0.00001 mark.

Technical indicator

Relative Strength Index: despite a significant correction, the daily-RSI slope holds above the neutral line, indicating the market participants remain bullish for Shiba Inu.

Bollinger Band Indicator: the coin price plunged to the indicator’s midline, offering another footing for buyers to sustain above the $0.0000125 level. The price moving above the midline maintains a bullish outlook.

• Resistance levels- $0.000015 and $0.000017
• Support levels: $0.00000125 and $0.00001