Supply Pressure at Crucial Resistance Threatens Shiba Inu Price for 15% Drop; Sell or Hold?

The Shiba Inu price showed a remarkable recovery in the third week as it jumped from a $0.00000645 low to $0.000008. However, the aforementioned psychological resistance aligned with a downsloping trendline created a high supply zone. In the last five days, the SHIB price showed several failed to surpass the overhead trendline indicating the sellers could reignite the prevailing downtrend.

Also Read: Shiba Inu Holders Urged To Move $SHIB Tokens From CEX to DEX

Shiba Inu Price Daily Chart: 

• A potential bearish reversal from downsloping resistance will replenish the selling momentum for a prolonged downtrend.
• The 50-day EMA slope acts as an additional barrier against buyers 
• The intraday trading volume of the Shiba Inu coin is $104.2 Million, showing a 0.24% gain.

Source- Tradingview

For nearly five months, the Shiba Inu price witnessed a steady downtrend under the influence of a resistance trendline. Amid this downfall, the prices have turned down trice from this dynamic resistance indicating the sellers are actively selling at rallies.

The several higher price rejection candles observed at the resistance trendline indicate the overhead supply is high and thus triggered a significant bearish reversal. The SHIB price currently trades at $0.00000758 and has also breached local support of $0.00000778.

With sustained selling, the coin price could tumble 15% and revisit the June bottom support of $0.00000645.

Is Shiba Inu Price Ready for Further Recovery?

In order for Shiba Price to embark on a lasting recovery rally, it is crucial for buyers to surpass the resistance trendline. This breakout has the potential to indicate an early indication of a reversal in the prevailing downtrend, creating a favorable opportunity for traders to consider long positions. Should this breakout materialize, it could propel the price upwards by 30%, and hit the psychological barrier of $0.00001

• Relative Strength Index: The daily RSI slope nosedived below the 50% mark reflecting the increased bearish momentum.
• Exponential Moving Average: The SHIB price failed to sustain above the recently reclaimed 20-day EMA indicating the seller’s control for this memecoin.