On Friday, Shiba Inu (SHIB) sellers broke through the weekly support level of $0.000023 and the support trend line of the symmetrical triangle pattern. The subsequent retest phase should verify that sellers are ready to continue this downtrend, suggesting that the January bottom support level of $0.00002 was reached

Despite a sloppy start to March, ETH whales continue to increase their holdings of the Shiba Inu token. According to on-chain data provider WhaleStat, $SHIB ranks 7th in the top 10 tokens held by Ether Whales.

Let's study the technical K-line chart of SHIB/USD –

Key Points.

  • 20-day and 200-day EMAs offer negative crossover
  • The Shiba Inu token traded at an intraday volume of $571.6 million, a loss of 23.6%.

Trading view K-line chart Source-Tradingview

The SHIB price retreated from the $0.000028 resistance level on March 1. The cottage coin fell 20% during the retracement, resisting the weekly support level of $0.000026. The technical K-line chart shows the convergence of the above support with the rising trend line of the symmetrical triangle pattern.

In addition, the token price broke through this common support level, indicating that sellers plan to bring the price back down to the psychological level of $0.00002.

Today, memecoin turned green in an attempt to retest the breakout support at $0.000026. The higher price rejection candle at this level indicates that the support level has turned into a resistance level. If sellers stay below this level, traders can expect a 10% drop.

Conversely, if buyers push the cottage coin above beyond resistance, it would indicate that the current crash is a fake and the token price will go back into continuation mode.

Technical specifications

The downward sloping EMAs (20, 50 and 100) indicate aggressive selling by cryptocurrency traders. In addition, the coin K-chart shows a negative cross of the 20 and 200 SMAs, supporting the influence of the triangle.

However, despite the price action forming a lower low, the Relative Strength Index (42) remained above 40%, indicating a slight weakening of bearish momentum.

  • Resistance levels – $0.0000226 and $0.0000253
  • Support levels are at $0.00002 and $0.000017.