Mapping how Shiba Inu’s next entry trigger will play out

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Dis­claimer: The find­ings of the fol­low­ing analy­sis are the sole opin­ions of the writer and should not be con­sid­ered invest­ment advice

Shi­ba Inu (SHIB) saw a brief con­sol­i­da­tion between the $0.034 and $0.018-levels for over two months. The buy­ers are now build­ing up ten­sion at its three-week trend­line resis­tance (white, dashed). Here, do note that for brevi­ty, SHIB prices are mul­ti­plied by 1000.

If the sell­ers reject high­er prices in the cur­rent range, SHIB will posi­tion itself for a near-term pull­back towards its imme­di­ate demand zone. Fol­low­ing the same, any close above $0.02439 would help the alt recov­er towards the $0.025-zone.

At press time, SHIB was trad­ing at $0.02446, up by 4.45 % in the last 24 hours.

SHIB 4‑hour Chart

Source: Trad­ingView, SHIB/USD

As soon as the alt hit its three-month low on 22 Jan­u­ary, the buy­ers took charge at the $0.018-mark, as they have for the last five months. Soon after, SHIB bulls ini­ti­at­ed a ral­ly that led the alt to dou­ble its val­ue before revers­ing from its long-term ceil­ing of $0.034-level.

As a result, the bulls have ensured high­er troughs while the bears kept the peaks in their influ­ence. This con­tributed to the for­ma­tion of a sym­met­ri­cal tri­an­gle-like pat­tern in the last two months. 

Recent move­ments have favoured the bulls as SHIB broke out of its down-chan­nel (yel­low) and crossed its 20/50 EMA. Also, the 20 EMA (red), now look­ing north, affirmed the near-term bull­ish advantage. 

Now, $0.024 is a crit­i­cal zone for the buy­ers to top­ple for them to claim a sol­id edge. Any close below this lev­el would con­firm the exis­tence of a hid­den bear­ish diver­gence and would stall the buy­ing spree. The pull­back would con­tin­ue to rest at its demand zone before the buy­ers yet again chal­lenge the trend­line resistance.

Rationale

Source: Trad­ingView, SHIB/USD

The RSI’s upturn from its over­sold ter­ri­to­ry only saw the 40-mark hur­dle in its swift recov­ery above the mid­line. Any close below its trend­line resis­tance would reaf­firm the hid­den bear­ish divergence.

Nev­er­the­less, the CMF crossed the zero line and pic­tured a buy­ing edge. Also, the DMI reit­er­at­ed the bull­ish edge, but its ADX pro­ject­ed a weak direc­tion­al trend for SHIB.

Conclusion

The $0.024-zone is vital for the buy­ers to con­quer for the recov­ery to test its 200 EMA (yel­low). Before that, SHIB could like­ly enter into a tight phase between the $0.022 and $0.023-levels.    

Besides, the meme-coin shares a stag­ger­ing 80% 30-day cor­re­la­tion with Bit­coin. Thus, keep­ing an eye on the king coin’s move­ment remains essen­tial for a prof­itable move. 

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