Shiba Inu Price Recovery Halts at $0.0000077 Resistance; Bullish Breakout or Reversal?

Last weekend’s recovery in the Shiba Inu price faced supply pressure at a downsloping resistance trendline. Today, with an insignificant gain of 0.1%, the coin price shows a doji-type neutral candle indicating indecision nature among traders. If no improvement is initiated in market sentiment, the dynamic resistance may pressurize the Dog-themed memecoin to lower prices. Should you enter this dip? 

Also Read: Shiba Inu News: Shibarium To Burn Trillions of $SHIB Tokens

Shiba Inu Price Daily Chart: 

• Overhead supply pressure restricts the SHIB buyers’ rise above the $0.00008 mark.
• The Shiba Inu price may continue a downward trend until the resistance trendline is intact
• The intraday trading volume of the Shiba Inu coin is $116.2 Million, showing a 30% gain.

Source- Tradingview

The Shiba Inu price is currently trading at the $0.00000768 mark and reflects a cautious recovery attempt in the daily chart. The formation of neutral candles in recent days indicates a lack of strong commitment from either buyers or sellers. The indecisive nature of these candles suggests a market struggle to establish a clear trend direction, creating uncertainty for SHIB’s near-term price movement.

The primary challenge for Shiba Inu lies in its ability to surpass the long-standing resistance trendline. If selling pressure strengthens at the trendline, it could trigger a bearish reversal. 

In such a scenario, SHIB’s price may flip $0.00007 support and plunge to the June bottom support level of $0.00000642. A bearish reversal would confirm the dominance of the resistance trendline and the continuation of the downtrend.

Will Shiba Inu’s Price Rally to $0.00008?

A new higher low formation in SHIB price reflects a spark of new recovery sentiment among traders. Considering the bullish momentum rise with the broader market sentiment, a breakout above the resistance trendline would indicate a potential change in the prevailing trend for Shiba Inu. Such a breakout would suggest that buyers are taking control, potentially leading to an upward price movement to $0.000084, followed by $0.000098.

• Exponential Moving Average: A breakdown below the 20-Day EMA slope will offer sellers an extra edge to plunge the SHIB price lower.
• Average Directional Index: The falling ADX slope reflects the bearish trend momentum is gradually diminishing.