Technical analysis in the cryptocurrency markets is a critical indicator that must be constantly monitored, especially by investors who engage in futures trading. What clues does the technical analysis provide for Shiba Inu, which is trading at the level of 0.00001003 dollars at the time of writing? We examine this in detail with important support/resistance levels.
On the daily chart of SHIB, an ascending channel formation can be observed. In the structure of the formation, both resistance and support breakouts are noticeable, but these breakouts often manifest as bear and bull traps. Despite the breaking of the resistance line in the recent SHIB rally, the daily bar closure occurs within the formation, resulting in a correction in the price.
The most important support levels to watch on the daily SHIB chart are, respectively, 0.00000971, 0.00000922, and 0.00000885 dollars. Particularly, a daily bar closure below the 0.00000971 dollar level, which played a significant role in the last two bar formations, will lead to short-term selling pressure on the SHIB price.
The most important resistance levels to monitor on the daily SHIB chart are, respectively, 0.00001028, 0.00001071, and 0.00001102 dollars. Especially, a daily bar closure above the 0.00001028 dollar level, which emerged as a significant barrier in the last two bull movements, will allow SHIB price to gain significant momentum and break the formation resistance.
On the weekly SHIB chart, the most distinct formation is a narrowing wedge formation. The break of this formation’s structure with the latest rise will enable the SHIB price to gain significant momentum. A weekly closure at these levels could allow the SHIB price to break the resistance and potentially rise to the 0.00001700 dollar level seen in August 2022.