Key Support level: $0.000032
Key Resistance level: $0.000035
Yesterday, SHIB had broken above a descending triangle formation, as seen on the following chart. Initially, it got rejected at the $0.00003 resistance level. However, after a slight pullback, SHIB managed to break above and quickly spiked towards the all-time high sitting at $0.000035.
This is roughly ~10-12% away from the current daily high as of writing these lines, according to CoinGecko. In case this resistance breaks – SHIB will reach the price discovery zone.
The bulls and bears are currently fighting just under this significant resistance. It is unclear if SHIB has the strength to push higher at this run. Following the 20% daily surge, it is likely that Shiba Inu will see some consolidation before a possible attempt to break the ATH.
Trading Volume: The volume exploded once the resistance at $0.00003 got broken. This shows the bulls took control of the price action. The question is if they can sustain it in the next few days.
RSI: The RSI is in the overbought area and reached almost the 80 level on the 4-hour timeframe. A pullback can be expected in the near future to cool off.
MACD: The histogram is firmly placed on the bullish side on lower timeframes such as on 4-hours. On the daily timeframe, SHIB has not yet crossed on the positive side, indicating that continuation is required for SHIB to turn bullish in the longer term.
This last move has turned the bias bullish over the short term. However, continuation is needed to gain more confidence in the current bullish price action in the longer term. A sharp rejection amid the all-time high resistance would cut this green momentum and likely see a rapid move to test lower support around $0.000032 and $0.00003.
While there are good reasons to be bullish on SHIB currently, a break of the all-time high would be necessary to confirm that SHIB can sustain its current gains and push higher.
Until this happens, it is best to be cautious when the price hovers pretty close under the all-time high resistance, as any rejection can take the price back to $0.000032 or lower. Remember – a violent rapid move often ends in a violent move in the other direction.
