The crypto market has been increasing substantially over the past week, with the total value rising approximately 6.5% from around $1.107 billion to the current level at $1.18 billion. Bitcoin (BTC) blasted past the $30,000 mark to record one-year highs around $31,443 leading the altcoins to profits.
Unfortunately, not every digital asset maintained the upward trajectory in the recovery journey. While PEPE proved to be the market leader in the meme coin sector, Shiba Inu and Dogecoin were scaling downward. In fact, Floki Inu and Bone ShibaSwap have performed better than DOGE and SHIB.
Pepe price recorded a spectacular rise with the meme coin rallying from $0.00000095 to $0.00000162. This represented a 70% uptick within seven days. The token has, however, taken a pause, trading sideways over the last three days.
Unfortunately for SHIB holders, the dog-themed token did not observe substantial increase. Instead, it is currently dealing with the exit of 40,000 SHIB holders that decided not to stay after the June crash, triggered by the lawsuits brought by the US Securities and Exchange Commission (SEC) against the world’s two largest cryptocurrency exchanges, Binance and Coinbase.
Shiba Inu Price Stares Into An Abyss As More Losses Loom
SHIB’s price action between June 12 and 25 was characterized by a series of higher highs and higher lows leading to the appearance of an ascending parallel channel on the daily chart. The downturn that began on June 26 saw SHIB lose the support provided by the lower boundary of the channel, dropping below the channel.
At the time of writing, Shiba Inu was trading in the red at $0.00000744 with bears determined to pull it below the immediate support provided by the $0.0000070 psychological. Note that a daily candlestick close below this level would spell doom for the SHIB Army as it would open the path to a drop towards the June 10 swing low around $0.00000608, embraced by the lower tip of the governing chart pattern. Such a move would represent an 18% decline from the current price.
SHIB/USD Daily Chart
Supporting the negative outlook for SHIB was the downward facing moving averages. The SMAs also provided additional pressure zones on the upside which continued to suppress the Shiba Inu price.
The Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) indicator had begun tipping down. Both oscillating indicators were positioned in the negative region, suggesting that the market conditions favored the downside.
On the upside, SHIB may favor the bulls if it turns up from the current levels to produce a daily candlestick above the $0.00000783 supply zone, embraced by the lower boundary of the rising channel. Such a move would place the token back into the confines of the prevailing chart pattern where it could spend a few days as it continues to rise.
