SHIB Price Analysis: Overhead Supply Pressure Hints SHIB to Retest $0.00001

On June 21st, the Shiba Inu (SHIB) price knocked out a five-week-old descending trendline resistance with a long bullish candle. The breakout opportunity attracted more buyers amid the improving sentiment of broader markets and propelled the altcoin to $0.000116. Furthermore, in response to selling pressure near $0.000012, the coin price may witness a minor pullback to $0.00001

Key points:

• The SHIB market value has appreciated 22.15% in the last four days
• Long-wick rejection candles near $0.000012 highlights supply pressure
• The intraday trading volume of the Shiba Inu coin is $940.6 Million, indicating an 18.2% gain.

Source- Tradingview

Over the past five weeks, the SHIB sellers were using a descending trendline to maintain their downtrend, which recently plummeted to a low of $0.000007197. However, coin buyers managed to mount legitimate support at the $0.75 mark.

Furthermore, the SHIB price rebounded from the mentioned support, and on July 21st, it witnessed a massive pump of 32.85%. The sudden price jump was backed by recent burn activity, bolstering buyers to breach the combined resistance of a descending trendline and $0.00001.

The post-retest rally surge showed a high momentum rally with three consecutive green candles. This recovery rally has surged the SHIB price by 22%, which currently trades at $0.0000116.

However, the long-wick rejection on the daily candle of June 21st and today (June 25th) indicates strong supply pressure near $0.000012. Therefore, if the SHIB price reverts, the traders can expect a retest to the $0.00001 psychological level.

However, sustained buying should eventually lead the altcoin 21.5% higher to $0.000014.

Technical indicator

The OBV indicator slope rising along with price action highlights the growing interest of market buyers. 

The recent price jump breached the Bollinger band indicator’s midline and poked the upper band. A retest to the upper band resistance bolsters the pullback theory from $0.000012

• Resistance levels- $0.000012, and $0.000014
• Support levels are $0.00001 and $0.00000756