Shiba Inu Faces Selling Pressure after a Break Below the Ascending Trendline
DeFi and NFT mania has had a profound impact on altcoins, with the majority, if not all of them, posting record gains. Notable cryptocurrencies, such as Solana, have hit new record highs. At the time of writing, Solana went up 29.70% in the preceding 24 hours and 57.25% in the past week. The crypto token was trading slightly above 190, which is a new record high.
Amid the rise in altcoins, SHIB/USD has shown less power to the upside. At the time of writing, SHIB/USD traded down 4.26% in the preceding 24 hours, and it has posted a gain of only 5.94% in the last seven days. Limited influencer mentions and volume flows into the crypto token have been blamed.
Remember!
In our previous outlook, we suggested a buy on SHIB/USD at the 0.00000655 support, if it broke above the descending trendline. The crypto token broke past the descending trendline at the support, as suggested, ushering in a fresh bullish move.
SHIB/USD also rose, hitting profit targets at the 0.00000707 and 0.00000751 levels. However, amid the bullish turn, SHIB/USD is still ailing from low volumes, with the total volume locked (TVL) at 339.66 million, which, at the time of writing, was below last week’s level.
SHIB/USD – A Technical Outlook
Shiba Inu 4-Hour Chart Analysis
Looking at the 4-hour chart above, it can be seen that SHIB/USD tried to move higher after a break above the descending trendline. However, the crypto token witnessed selling pressure and broke below the ascending trendline on September 6.
SHIB/USD Trade Analysis
I continue to hold a bullish view on SHIB/USD, basing the argument on the break above the descending trendline at the beginning of September. Nonetheless, I will keep off SHIB/USD until a resumption of the ascending trendline or a retreat to the support at 0.00000655.
Besides that, I will keep a keen eye on the SHIB/USD TVL, as it will suggest a potential volume buildup or drawdown that will shape future trends.
SHIB/USD Trade Idea
Consider a buy trade on SHIB/USD after a retreat to the support of 0.00000655, or a break above the ascending trendline. I will also wait for trade confirmations via price action signals on the 4-hour or daily chart, before considering buy trades. Good luck!
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