SHIB price meets resistance at the 50-SMA to delay a bullish breakout through the descending parallel channel. The SuperTrend indicator continues to hold above the price to confirm this bearish outlook.
SHIB Price continued the downtrend following resistance around $0.00006261. The correction is price was driven by the development that expected SHIB listing on Kraken had hit as snag. The descending parallel channel’s upper boundary reinforced the level, leading to losses towards $0.0000590. A continued price action below the upper boundary resistance will confirm a downswing beyond $0.000041. Moreover, SHIB has been closing below the 50-day Simple Moving Average (SMA) on the four-hour chart since October 31. If this continues, the continuation of the bearish outlook appears inevitable.
SHIB Price Meets Lower Resistance to Sustain Downtrend
Immediate resistance is being provided by the 100 SMA at $0.00005406. At the time of writing, Shiba Inu was exchanging hands at around $0.00005903. The Relative Strength Index (RSI) position at the midline shows that SHIB price is currently consolidating as bears and bulls cancel out. If the resistance at the 100-day SMA remains intact, Shiba Inu price will continue reversing the upswing that was started on October 04 towards losses below $0.000041. If this happens, it will confirm the continuation of this bearish outlook and trigger massive sell orders that might lead to massive losses.
SHIB/USD Four-Hour Chart
The four-hour chart also highlights the pressure the sellers have put in, especially with a bearish signal from the SuperTrend indicator. The SuperTrend is a chart overlay indicator that follows a trend of a particular cryptocurrency. It utilizes a true average to determine the volatility of the market. For example, the SuperTrend indicator sent a sell signal to sell SHIB on November 03.
This was confirmed when the 50 SMA crossed above the price around the same time. Since then, the SHIB price has continued the decline. As long as the SuperTrend line holds above the price, SHIB Price could see significant declines.
Looking Over The Fence
A look at the other side reveals that Shiba Inu price could anchor on major support at around $0.00005208, a region highlighted by the middle boundary of the descending parallel channel. If bulls can pivot on this point, they can push the SHIB price beyond $0.00005406, a region defined by the 100 SMA to overturn the downtrend.
If this happens, Shiba Inu buyers might retest the resistance at $0.00006462 where the 50 SMA coincides with the upper boundary of the descending channel or even beyond the SHIB all-time high around $0.00008848.
Moreover, the flattening RSI and the Doji candlestick at the end of the four-hour chart indicates indecision in the market and that the market might be heading towards consolidation in the near term.
As such, investors might have to wait before entering the market.
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.