Shiba Inu price rebounded earlier on Tuesday during the London trading session, taking back some of the losses incurred during yesterday’s market downturn. However, the SHIB price chart looks bullish as the asset was one of the largest gainers in the market-wide recovery, showing one of the highest correlations to Bitcoin in the market.
Will Shiba Inu Price Rally Last?
SHIB price is currently in a downward trend as indicated by the descending wedge pattern. The recent candlestick shows a small green candle after a series of red candles, suggesting a potential short-term reversal or consolidation phase within the descending wedge. The falling wedge pattern also often suggests a corrective phase, which might lead to a bullish breakout, but confirmation is required.
The 50-day EMA is at $0.00001734, and the 200-day EMA is at $0.0000186, both above the current price, confirming the overall bearish trend CoinGecko data shows.
The Shiba Inu price chart sports an immediate support level of around $0.0000115, with a stronger support zone between $0.00001 and $0.000011, highlighted by the grey area. This zone also has a fair value gap that the price action filled in yesterday’s crash. Additionally, it was the last zone of market imbalance for the Shib price, meaning the dip may be over.
There is some resistance around $0.00001734 (50-day EMA), followed by $0.00001860 (200-day EMA), and a major resistance zone around $0.00002500 to $0.00003000. If the price fails to break above the 50-day EMA, it may drop 41% to $0.00001135, which coincides with the bottom trendline of the falling wedge and falls into the FVG zone.
The Relative Strength Index (RSI) is at 33.01, which is close to oversold territory. This indicates a potential short-term bounce but with an overall bearish sentiment. The Chaikin Money Flow (CMF) is at -0.01, indicating mild selling pressure.
If the Shiba Inu price forecast shows that it breaks above the 50-day and 200-day EMA, it may signal market strength, turning the asset bullish. This may invalidate the bearish thesis, as a follow-up breakout from the falling wedge may catapult the SHIB price to $0.00002796, a 102% increase.
The post Shiba Inu Price Recovers by 16%, Will It Last? appeared first on CoinGape.
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