SHIB Holders Lose $0.0000125 Support; Now What?
On August 14th, the SHIB/USDT pair witnessed a sudden inflow, which bolstered the buyers to surpass the $0.0000125 monthly resistance. Moreover, the massive green candle drove the prices to a three-month high of $0.00001774, followed by an immediate correction to stabilize the excess buyers. Read more to see how this pullback opportunity offers sidelines buyers to grab an entry opportunity.
Key points from SHIB analysis:
- The SHIB price drops below the 50% retracement level
- Bullish reversal from the $0.00001 support will bolster the formation of the cup and handle pattern
- The intraday trading volume of the Shiba Inu coin is $813.7 Million, indicating a 17.5% loss.
Source- Tradingview
The bearish pullback with no low activity indicates a temporary retracement in Shiba Inu. Anyhow, the prices tumbled 28% and tested the $0.0000125 as potential support. Along with this horizontal support, the 0.5 Fibonacci retracement level and 50-day at the same spot make it strong confluence support to bolster uptrend continuation.
However, on August 27th, the broader markets witnessed sudden selling pressure and extended the ongoing correction phase in the crypto market.
As a result, the SHIB price breached the $0.0000125 confluence support, suggesting the sellers are ready for another leg down. If today’s retest candle sustains below the breached support, the sellers will pull the coin 20% down to hit the $1 psychological support.
Furthermore, this downfall increased SHIB’s price chances of revisiting the June bottom support of $0.00000755.
On a contrary note, If buyers pushed the price above the $0.0000125 during the retest phase or made a recovery attempt from the $0.00001 support, the chart will hint at the formation of a cup and handle pattern. The potential recovery could drive the SHIB price 43.88% higher to hit the $0.000018 resistance.
Technical indicator
Relative strength index: the daily-RSI slope barely sustaining above the midline lines keeps the bullish sentiment intact.
ADX indicator: the ADX slope retraced lower indicates the bullish momentum took a significant hit due to the current correction.
- Resistance levels- $0.0000125 and $0.000015
- Support levels: $0.000001 and $0.00000755
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