Shiba Inu price at pivotal moment as SHIB nears May 19 low
- The Shiba Inu Prize refuses to resolve the downward channel of the past nine days.
- SHIBA is quietly approaching the May 19 low of $ 0.00000607.
- A resurgence of the bullish momentum will hit formidable resistance at the previous level of the top of the symmetrical triangle.
Shiba Inu’s price has been sealed in a downward channel since June 3. Therefore, unless SHIB can overcome the channel magnet effect, it will test the May 19 low and eventually extend the decline that began on May 10.
The price of Shiba Inu decouples from the flagship cryptocurrency
Since June 3, the price of Shiba Inu has trended downward in a descending channel reaching a drop of 40% for SHIB on June 8. However, it is interesting to note that the volume underlying the descending channel has been sporadic, revealing that there is no scramble for the exits, despite the weakness. In fact, today’s four hour volume bars barely exist.
For a while, the limited volume of the SHIB validated the view that the gentle descent was a function of the broader weakness of the cryptocurrency complex. Still, the SHIB correlation coefficient with BTC quickly turned negative over the past two days. The negative correlation suggests that the price of Shiba Inu has decoupled from the larger market and is determined by token-specific issues or the governing downlink channel.
It will take a convincing bullish exit from the descending channel to drown out any skepticism about the current Shiba Inu price structure. Immediate support materializes at the May 19 low at $ 0.00000607, followed by the chain’s midline, currently at $ 0.00000572. After that, a deeper drop could reach the lower limit of the channel at $ 0.00000485, achieving a 25% drop from the current price.
4 hour SHIB / USD chart
If the digital asset unlocks from the channel, there is no immediate resistance for the Shiba Inu price up to the symmetrical triangle top line at $ 0.00000757. The level provided support in May and created resistance earlier this month. A successful close above the line could extend the SHIB rally to the 50 four hour simple moving average (SMA) at $ 0.00000788.
For aggressive market traders, look for an above-average close to target a rally to the June 2 high of $ 0.0001048, generating a 60% gain from the current price.
An increased level of uncertainty accompanies newbie cryptocurrencies as the price history is too limited to set outlook with confidence. Instead, investors are better served to realize that they are creating a social media hype and the resulting Fear of Missing Out (FOMO) that convinces retail investors of staggering returns.
Interestingly, Google Trends shows that SHIB search interest is 10% from the May 11 peak and is resting at the lowest level since the peak. Thus, it is difficult to rally a new cryptocurrency without retail interest because institutions do not buy SHIB.
SHIB Research Interest – Google Trends
The price of the Shiba Inu is a pivotal moment in its short history. How it resolves the descending SHIB channel and handles the May 19 low will dictate the price structure for many weeks.