Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
Shiba Inu (SHIB) saw a short-term consolidation between the USD 0.034 and USD 0.018 levels for more than two months. Buyers are now building tension at the three-week trendline resistance (white, dashed). Keep in mind that for brevity the SHIB prices are multiplied by 1000.
If the sellers reject higher prices in the current range, SHIB will position itself for a short-term pullback to the immediate demand zone. Echoing the same, any close above $0.02439 would help the alt recover towards the $0.025 zone.
As of going to press, SHIB was trading at $0.02446, up 4.45% in the last 24 hours.
SHIB 4 Hour Chart
Source: TradingView, SHIB/USD
Once the alt hit its three-month low on Jan. 22, buyers took the lead at $0.018, as they have for the past five months. Shortly thereafter, SHIB bulls began a rally that caused the alt to double its value before returning from its long-term ceiling of $0.034.
As a result, the bulls have created higher troughs while the bears have kept the tops under their influence. This has contributed to the formation of a symmetrical triangular pattern over the past two months.
Recent moves favored the bulls as SHIB broke out of its down channel (yellow) and passed its 20/50 EMA. Also, the 20 EMA (red), which is now looking north, confirmed the near term bullish advantage.
Now $0.024 is a critical zone for the buyers to fall over so they can claim a solid lead. Any close below this level would confirm the existence of a hidden bearish divergence and slow the buying frenzy. The pullback would rest in its demand zone before buyers challenge the trendline resistance again.
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Source: TradingView, SHIB/USD
The RSI’s rebound from oversold territory only saw the 40-mark hurdle in its rapid recovery above the midline. Any close below the trendline resistance would reconfirm the hidden bearish divergence.
Nevertheless, the CMF crossed the zero line and imagined a buying advantage. Also, the DMI repeated the bullish edge, but the ADX predicted a weak directional trend for SHIB.
Conclusion
The $0.024 zone is vital for the buyers to capture for the recovery to test its 200 EMA (yellow). Before that, SHIB would likely enter a tight phase between the $0.022 and $0.023 levels.
By the way, the meme coin shares a staggering 80% 30-day correlation with Bitcoin. Keeping an eye on the movement of the king coin thus remains essential for a profitable move.
This post Mapping How Shiba Inu’s Next Input Trigger Will Go
was published first on https://ambcrypto.com/mapping-how-shiba-inus-next-entry-trigger-will-play-out/
