Sustained Selling may Lead $SHIB to $0.0000074?

This week the crypto market witnessed another wave of selling pressure, undermining the recovery rally it experienced last week. As a result, the Shiba Inu (SHIB) price turned down from the $0.000012 resistance on June 26th. The reversal has plunged the altcoin below significant support of $0.00001, threatening a downfall to June’s low support of $0.00000741.

 Key points: 

The SHIB market value has depreciated 18.6% in the last four days
The SHIB holders lost 20 day EMA support
The intraday trading volume in Shiba Inu coin is $530 Million, indicating a 25% gain.

Source- Tradingview

Responding to the widespread recovery last week, the SHIB/USDT pair rebounded from the $0.00000741 support on June 19th. The resulting U-shaped recovery propelled altcoin 63.5% higher as it reached the $0.000012 resistance.

However, the SHIB buyers couldn’t surpass the 50-day EMA aligned with mentioned resistance and reverted immediately.  Thus, A V-Top reversal indicated aggressive selling, which plunged the altcoin below the shared support of $0.00001 and 20-day EMA. 

If today’s retest candle sustains below the breached support, the extended correction would slump the SHIB price 8.85% down to $0.00009, followed by the current low of $0.00000741.

However, a retest to this bottom support could replenish the bullish momentum for another recovery rally.

Technical indicator

DMI indicator: The increased selling pressure influences the DI lines in the DMI resulting in a drop in bullish spread and teasing a bearish crossover. Moreover, the fall ADX line showcases a loss in trend momentum, lowering the chances of a reversal. 

MACD indicator: After a remarkable rise to the zero line, the MACD and signal lines display a lateral shift in a bullish trend. Hence, the possibility of the MACD and signal lines regaining the bearish alignment increases drastically.

Resistance levels- $0.00001, and $0.000012
Support levels are $0.000009 and $0.00000741