Shiba Inu price comes close to knocking off resistance at $0.00001 but stalls at $0.0000096 due to the formation of a double-top pattern.
Published 7 seconds ago
The second-leading meme coin Shiba Inu rallied alongside other crypto assets led by Bitcoin’s climb to $42,000 for the first since May 2022. Shiba Inu price exploded towards the psychological resistance at $0.00001 but stalled at $0.0000096.
Despite a correction following swiftly to $0.00000894, SHIB price is holding 5.7% gains accrued in the last 24 hours on top of the cumulative 14.2% growth in 30 days, data by CoinGecko shows.
Shiba Inu Price Prediction: SHIB Reacts To Double-Top Formation
The formation of a double-top pattern in the four-hour time frame quickly changed the short-term outlook for Shiba Inu, resulting in a trend correction. As observed in the chart below, sellers have the upper hand for now which means that declines could extend if bulls fail to hold onto a higher support preferably at the 20 Exponential Moving Average (EMA) (blue).
The Relative Strength Index (RSI) paints a grim picture at the moment following its retreat from highs around 80 in the overbought area into the neutral zone at 58.
It is possible that a trend reversal will follow momentarily but first the RSI must successfully retest the ascending trendline.
Although a trend reversal seems imminent, traders may want to prepare for more dips below the 20 EMA support at $0.0000089. In that case, the 50 EMA (red) coinciding with the descending trendline and the 200 EMA at $0.0000083 will come in handy.
Price corrections are not necessarily a bad thing, especially in bull markets, they allow sidelined investors to seek exposure to SHIB while traders dollar-cost average to maximize gains as the uptrend resumes.
Recommended for you: Ethereum Price As Institutional Investors Drive ETH Rally, $3k Up Next?
Shibarium Reigns Supreme As Transactions Hit 7.8 Million
The Shiba Inu Ethereum layer 2 scaling solutions protocol Shibarium, whose mainnet launched in August has been gaining traction considerably in the last few weeks such that the average number of daily transactions is now at 7.84 million.
Shibarium allows users in the Shiba Inu ecosystem to send near instant transactions boasting lower fees and high scalability.
According to the protocol’s blockchain explorer, over 1.9 million blocks have been processed at an average block time of five seconds. So far, Shibarium has recorded more than 30 million transactions from approximately 1.3 million wallet addresses.
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.