Published 20 mins ago
While several cryptocurrencies showed phenomenal growth in the past three months, the SHIB/USDT pair struggled to surpass the $0.000132 supply zone. However, the consolidation phase below the resistance mentioned above revealed the formation of an inverted head and shoulder pattern.
- The SHIB market value has soared 22.27% since last month
- The recent spike in market price tests the 200-day EMA
- The intraday trading volume of the Shiba Inu coin is $1.69 Billion, indicating a 350% gain.
After completing the right portion of this pattern which found proper support at the $0.00001 level, the SHIB price reached the neckline resistance of $0.000132. However, for nearly a month, the price action showed multiple high-wick rejection candles, indicating that sellers are aggressively defending this barrier.
Today, the SHIB price witnessed a significant inflow which surged the market value by 20%. This sudden price may be bounded by the recent tweet from @shib_superstore, that this month’s burn activity will surpass last month (July).
We passed $1000 for the month and just about the halfway point of last month, we are on pace to beat last month which is awesome!
Another milestone, we have passed $60,000 in total burn revenue!
— SHIB Super Store (@shib_superstore) August 12, 2022
Furthermore, this bullish growth has triggered the reversal pattern, which may bolster the buyers for further price recovery. However, earlier today, the SHIB price tagged the combined resistance of $0.000016 and 200da-day EMA.
However, the coin price currently trading $0.00001525 mark indicates a higher price rejection attached to the daily candles. This reversal suggests profit booking from short-term traders. If the selling pressure persists, the coin price may plunge to the $0.000132 breached resistance.
This minor replacement will allow sideline buyers to enter at the retest point. With replenished bullish momentum, the post-retest rally should surge 45% higher to hit the $0.000019 psychological level.
Conversely, if the buyers fail to sustain about the $0.00132 flipped to support, the bullish thesis will get invalidated.
MACD indicator: the MACD and signal lines gain a bullish spread with a spike in buying pressure evident by the boom in positive histograms. Furthermore, the lines sustain within the positive territory despite the recent merger reflecting solid underlying bullishness.
EMA– The bullish candle tests the 200-day EMA and displays a higher price rejection that may shortly take support at the broken 100-day EMA.
- Resistance level: $0.000013 and $0.000017
- Support levels: $0.00000121 and $0.0000099
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.