The Shiba Inu price has soared along with other altcoins that have bounced and witnessed good gains. However, the rally looks set to lead to a pullback for SHIB. Because the price rally ended at a possible resistance barrier. However, the event that is likely to cause SHIB price to drop could result in Tron (TRX) rising. FXStreet analyst explained, here are the details…
- 1 Shiba Inu price returns to average
- 2 SHIB price may drop for these reasons
- 3 Bull run for Tron (TRX), the model that crashed the Shiba Inu
- 4 Share this:
Shiba Inu price returns to average
Shiba Inu price showed bullish signs yesterday leading to a 31% gain. This huge increase is due to Synthetix (SNX), Storj (STORJ), Dogecoin (DOGE) etc. It was a common theme among many altcoins such as The Relative Strength Index (RSI) was producing higher lows for the SHIB between May 12 and June 13. However, the price produced lower lows, creating a bullish divergence. As a result, the price of the Shiba Inu has risen as it has. However AmkNews.com As we have reported, this uptrend now faces a double threat.
SHIB price may drop for these reasons
First, Shiba Inu price is struggling to break through the $0.0000104 hurdle. A rejection here would result in a 17% drop to $0.0000095. Second, the SHIB produced lower highs between May 30 and June 21, while the RSI created higher highs. This setup presents itself as a bearish trend. However, it adds more confidence to the 17% drop and the possibility of a pullback overall. That’s why traders need to pay close attention to today’s price action.
With things going up right now, traders need to watch out for the RSI. This indicator is bearish and predicts a correction. However, it is also possible for the Shiba Inu price to produce a daily candlestick above $0.0000104. In this case, the price of the Shiba Inu would potentially increase 33% to $0.0000139. Overcoming this important hurdle of resistance will give a break to the correction thesis described above.
Bull run for Tron (TRX), the model that crashed the Shiba Inu
TRON price has been curling between two key trend lines since February 2021. This great consolidation almost ended on the downside. However, a quick rebound has given the bulls another chance for a bullish breakout. The TRON price has produced three distinct lows since April 13, 2021, and four high lows since February 18, 2021. It is possible to connect these swing points using trendlines to reveal a symmetrical triangle formation. Such a technical setup predicts a 72% move, obtained by measuring the distance between the initial high and low swing. However, the direction of this formation is unclear. The direction will be clear only after a successful exit. While this model means collapse for Shiba Inu, it could open the door to rally for Tron.
On June 12, TRON price dropped below the lower trendline. Thus, it produced a three-day candle close, signaling the downtrend. However, a quick recovery above $0.055 and the lower trendline stopped the downtrend. This bullish momentum is likely to continue. In such a scenario, TRON price is likely to tag the upper trendline of the symmetrical triangle. Also, the resistance barrier would coincide with $0.081. A three-day candlestick close above this level would reveal a target of $0.140. Regardless of the bullish momentum, TRX price could also produce a three-day candlestick below $0.055. In this scenario, the symmetrical triangle pattern would push the price down 72% to $0.016.
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