- Shiba Inu Price breached the ascending parallel channel that has provided support all summer.
- SHIB saw an influx of dormant tokens pour into the market last week.
- Invalidation of the bearish thesis is a breach above $0.00001743.
Shiba Inu price is showing concerning technicals that confound recent bearish on-chain metrics. A sweep-the-lows event could occur in the coming weeks.
Shiba Inu price is showing bad signs
Shiba Inu price currently auctions at $0.00001214 as the bulls are trying to defend their post near the $0.00001200 level on intra-hour time frames. On August 26, investors witnessed the first concerning signal as the bears forged a daily closing candle below the ascending trend channel. The breach came at a unique time for SHIB as an influx of dormant tokens had resurfaced on the market.
A week later, on August 4, the bulls went for a retest of the ascending barrier while dually colliding with the 21-day simple moving average (SMA). The SMA ultimately rejected re-entry of the ascending trend near the $0.00001300 zone. The Shiba Inu price has fallen two consecutive days in a row and is now consolidating as investors anticipate another decline.
If market conditions are genuinely bearish the first target for SHIB shorters is the July 15 low at $0.00000976. If the bulls do not step in to provide support at the mid July level, all of summer’s countertrend rally could get wiped, with bearish targets near $0.00000700. Such a decline would result in a 40% decline from the current Shiba Inu price.
Invalidation of the downtrend scenario is contingent upon the ascending trend remaining as a rejective border for countertrend bulls. The current price is $0.00001420 but subject to incline as time progresses. If the bulls can hurdle the ascending boundary, they could rally as high as $0.00001800, resulting in a 40% increase from the current SHIB price.
In the following video, our analysts deep dive into the price action of Shiba Inu, analyzing key levels of interest in the market. -FXStreet Team