Shiba Inu’s price to test crucial support again before the SHIB bulls put in place the next lead
- Shiba Inu’s price jumped above the descending triangle pattern that sealed the very token for over a month.
- The recent break above the strong resistance trendline paints a bullish picture for a SHIB price reversal.
- However, Shiba Inu has multiple obstacles ahead of him which could hamper the asset’s rally.
The price of the Shiba Inu recently emerged from a bearish formation, introducing the potential for a new rally. SHIB escaped above a critical resistance trendline which was a possible turning point for the coin’s disappointing returns even since the crypto market crash in May.
Upward price trend for Shiba Inu limited by obstacles
The price of Shiba Inu has jumped more than 60% from its local low on June 22. SHIB has been locked in a descending triangle formation since May 19 on the 12 hour chart as the bulls in SHIB have not been able to push prices higher against the overwhelming distribution of the sellers.
SHIB overcoming the descending trendline of the triangular pattern gives the Shiba Inu price a measured target of 50% at $ 0.00001270, the highest point in the graphic pattern.
The dominant direction for Shiba Inu is bullish. However, the memes-based token could face several hurdles before continuing its rally. SHIB could see a further test of the descending trendline which acted as strong resistance for the coin before heading higher.
The price of the Shiba Inu struggled to hit the 12-hour simple moving average (SMA) of 100, which acts as strong resistance for the SHIB. As a result, the same token fell further below the 50% Fibonacci extension level at $ 0.00000906.
12 Hour SHIB / USDT Chart
Only a candle closed above $ 0.00000906 would open the possibility for the canine themed token to try to reach the 100 twelve hour SMA at $ 0.00000970 before reaching the next resistance level at the d level. 61.8% Fibonacci extension at $ 0.00000991.
If Shiba Inu’s price action worked in favor of the bulls, SHIB would also have to overcome the 70.5% Fibonacci extension level at $ 0.000001053 before the bullish thesis of a 50% breakout can be made. expected.
An unforeseen increase in selling pressure could lower the price of Shiba Inu. Nonetheless, SHIB would likely find support at the hypotenuse of the descending triangle to $ 0.00000838 and the 38.2 Fibonacci retracement level at $ 0.00000822.
Failure to maintain above the aforementioned critical lines of defense could lead to further problems for bulls. However, exceptional support is found at the 50 twelve hour SMA, coinciding with the 27.2% Fibonacci retracement level and the start of the demand zone at $ 0.00000744.