Shiba Inu Price Analysis: SHIB Price Trendline Stronger Than Bitcoin’s; Will It Trigger A Reversal?
Qadir AK19 Aug 20231 min read
A few days before the ongoing correction phase, the Bitcoin price action was approaching the 2023 bull run support trendline. However, the sharp increase in selling pressure breaks the trendline and brings BTC’s market value to $26K.
Unline Bitcoin, Shiba Inu coin price manages to bounce back from the support trendline with a lower price rejection. However, the 5.66% recovery is negligible compared to the 23% fall breaking below the crucial 200 and 50-day EMA.
Following the downfall, the SHIB prices limit the chances of a golden crossover as it flattens out the 50-day EMA. Moreover, the recovery candle faces opposition from the 50-day EMA and limits further recovery.
The Shiba Inu Coin price trades close to the 23.60% Fibonacci level of the long correction in early 2023. Currently, the meme coin exchanges hand at $0.00000838 with an intraday fall of 2.33%
Despite the rising selling pressure, the recovery lights hope in the technical indicators. The stochastic RSI lines are preparing a bullish crossover in the oversold zone. Meanwhile, the RSI line bounces back to the halfway line and avoided the oversold zone altogether.
Will Shiba Inu Prices Respect The Trendline?
The intraday loss of 2.33% warns of a high supply present at the 50-day EMA, which may continue to resist the recovery. This increases the chances of a downfall below the support trendline. In such a case, the breakdown rally will discount SHIB prices by 14% to test $0.00000711.
On the flip side, the optimism in technical indicators and buyers present at the trendline might halt the downtrend. A recovery rally breaking above the 50-day EMA will signal a buying opportunity, with a primary target of the 200-day EMA.
