July 24, 2024
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Blockchain News

Shiba Inu Faces Critical Resistance: Can Bulls Make a Comeback?

Shiba Inu (SHIB), the meme coin currently ranking 16th among cryptos, exhibited a fleeting rise over the weekend, peaking at $0.00000773. However, as Monday dawned, SHIB retraced by 1.8%, settling at $0.00000724. With a robust market cap of $4.2 billion, it remains a notable player in the crypto space.

Interestingly, SHIB has been grappling with the daunting task of breaching the seller congestion near the 21-day Exponential Moving Average (EMA). Surpassing the next resistance barrier at $0.000008 seems even more challenging. Conversely, an ascending trendline has been the savior, supporting the coin’s downside. Bulls must guard this trendline diligently to thwart its potential transformation into resistance.

The Moving Average Convergence Divergence (MACD) does hint at a buy signal, with the blue MACD line overtaking the red signal line, typically prompting traders to lean towards buying SHIB. However, the skepticism remains. The lukewarm sustenance of its uptrend since its previous rally to $0.000011 pre-Shibarium launch leaves traders wary of a significant trend reversal.

SHIB’s future price movement hinges predominantly on its response to the support near $0.000007. Successfully maintaining this support could rekindle bullish sentiments, tempting traders to adopt a long strategy. This could pave the way for SHIB to target $0.000008 and, optimistically, the $0.00001 price points.

Yet, any waning in the $0.000007 support could trigger a wave of skepticism. With the Relative Strength Index (RSI) already flagging diminishing bullish momentum, weakening this pivotal support could spell trouble. The previous nosedive below the trendline at $0.00000815 saw sellers taking charge, pushing the coin down to $0.000007.

SHIB’s technical outlook largely tilts towards the bearish side in shorter time frames. This sentiment is further bolstered by the MACD’s sell signal and placement below the mean line (0.00), implying a seller’s market.

While the SuperTrend indicator forecasts a bearish scenario, a rally above $0.0000075 could attract more investors. However, if SHIB dives below $0.0000072, it might plunge further into the $0.000006 territory.

On another note, Dogecoin, the premier meme coin, continues to outshine SHIB. According to Coingape’s analytical tool, an equal investment in DOGE and SHIB for a year would’ve been more lucrative in the former.