The cryptocurrency market seems to have had a long-lasting impact of these events as the price continues its usual tendency to consolidate in a narrow range. Although there was a brief uptick after the consolidation, the bulls seem to have been exhausted due to below-average buying volumes. While the attention on memecoins is rising, the most popular Shiba Inu (SHIB) has lost its appeal and hence the price has failed to attract the required volume.
The market has been slightly volatile over the past few days following the launch of the ETH ETF. Due to this, SHIB price has also gained some traction and hence, it is trying to break out of the downtrend and show a major trend soon. However, this move may not be that easy considering the current trading setup as the price is approaching the ‘bearish capitulation’ zone.
SHIB price has been trending upwards for a while now as the lower trendline has been acting as a strong support. The recent volatility has exacerbated this space, resulting in the price posting consecutive bullish candles that have lifted the levels within the ascending triangle resistance. Despite the current breakout attempt, a bullish close above this area could validate this uptrend.
Moreover, the price has reached the upper boundary of the Gaussian Channel and a close above these levels could trigger a new bullish scenario. On the other hand, the RSI is rising, suggesting that the price could hold highs and reach the upper resistance zone between $0.00003 and $0.000032. For this to happen, there needs to be an increase in buying pressure along with rising trader activity, which could attract more liquidity.
Therefore, it is very important to keep a close eye on Shiba Inu (SHIB) price action before the close as a small mistake could cause the stock price to crash. A daily close inside or below the resistance area could validate the bearish momentum, which could lead to further declines.