Source : coingape.com
Shiba Inu price comes under immense pressure with Powell’s hawkish taper remarks on Tuesday November 30. Fed Chair Jerome Powell signalled the United States central bank would consider speeding up its withdrawal of bond purchases potentially increasing the risk of inflation increase. SHIB price slumped into the red on Tuesday following the news which has seen it shed over 8.83% from over the last 24 hours. Shiba Inu (SHIB) is hovering at $0.00004490 at press time.
Shiba Inu Price V-Shaped Top Correction Aims For $0.00003897
SHIB price action has been spelling out a V-shaped top chart pattern after turning down from the yesterday’s high around $0.000055. The losses intensified on Wednesday forcing TRX to retest support at $0.00004453 embraced by the 200-day SMA. The pattern’s downtrend line has capped the price, with Shiba Inu currently exchanging hands at $0.00004490
If this pattern holds, it is expected that SHIB will complete the V-shaped top correction to tag the November 29 low at $$0.00003897, an 13% drop from the current price.
The bearish narrative has been reinforced by downward movement of the Moving Average Convergence Divergence (MACD) indicator. Note that the MACD sent a call to sell SHIB signal on Tuesday when the 12-exponential moving average (EMA) crossed below the 26 EMA indicating that the market momentum has reversed from bullish to bearish. Note that the pessimistic outlook will gain more traction once the MACD crosses below the zero line into the negative region.
SHIB/USD Two-Hour Chart
On the flipside, a rise closure above the100-two-hour SMA at $0.00004453 may trigger an upswing. If this happens, Shiba Inu price could re-test the resistance at $0.00004821 and the November 30 high at $0.000050.
Note that SHIB is trading above the 50- and 100-period SMA at $0.00004209 and $0.00004127 respectively which provide robust support downwards. The support zones may absorb any selling pressure that may threaten to take SHIB to the levels earlier described.