Shiba Inu has persistently faced opposition around a critical resistance trendline, and breaking above it would set the pace for rallies to higher prices.
Notably, the second-largest meme coin by market cap is stuck between two critical areas, according to a TradingView analysis from SwallowAcademy. Above SHIB is the 200-exponential moving average (EMA), and just below is the key support level around $0.0000119.
Selling Pressure from Moving Averages Impeding Uptrend
The analyst identified a consistent trend of higher price rejection at each attempt to break above the moving average. For perspective, Shiba Inu rallied past the 200 EMA to a high of $0.00001765 in May, but the momentum did not last. Selling pressure from the resistance sparked a rejection, with the token falling below again.
The same happened when Shiba Inu broke above the resistance EMA in July and September to highs of $0.00001597 and $0.00001484, respectively. Each of the visits was temporary, with selling pressure from the moving average pushing prices lower.
Support Could Act as Catalyst for Higher Shiba Inu Prices
Each rejection from the 200EMA has sparked a revisit of the support level around $0.0000119. Nonetheless, the area has also provided substantial support to cushion any form of weakness.
This is a positive sign for Shiba Inu, as it indicates that buyers still have sufficient firepower to defend against new lows. Moreover, the analyst highlighted that as long as the meme coin continues to hold its support, the chances of reclaiming higher prices exist.
He predicted a clean sweep to reclaim the 200 EMA, currently standing at $0.00001346. If Shiba Inu successfully breaks above this moving average, it would pave the way for moves to much higher price levels.
Shiba Inu Targets If It Loses Support Area
Nonetheless, current bearish trends suggest that Shiba Inu could still fall below the critical support area at $0.000010. SHIB is down 1.57% in the past 24 hours and 5% in the past seven days, signaling a clear downtrend.
If Shiba Inu loses this support, an earlier analysis from RTED_Investing predicts a dump to $0.0000110. Meanwhile, MMB Trader shared that Shiba Inu could potentially drop to $0.000010 and also possibly add one more zero to trade at $0.00000600.
However, these levels do not suggest a complete bearish shift for Shiba Inu, as the analyst noted that it could bounce from there to $0.00007730. In the meantime, Shiba Inu trades at $0.00001198.
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