The bullish rebound from the $0.0098 mark laid a foundation for the recent weeklong shopping spree. As a result, Shiba Inu [SHIB] rose to retest the $0.0129 level after several weeks. (For brevity, SHIB prices are multiplied by 1000 from now on).

As price action took a steep dive below the 20 EMA (red) and the 50 EMA (cyan), the bears took control of the immediate trend.

If the buyers gather enough momentum to swing through the Point of Control (POC, red), SHIB could see gains in the near term. At the time of going to press, SHIB was trading at $0.01135, down 3.12% in the past 24 hours.

SHIB 4 Hour Chart

Source: TradingView, SHIB/USD

For the past five days, sellers have continued to pose recovery hurdles as the 20 EMA appeared to jump below the 50 EMA. Any bearish crossover would hamper near-term recovery opportunities. To top it off, the volumes are also decreasing. That makes the alt’s current position quite vulnerable.

With price action moving near the POC and EMA ribbons, SHIB would aim to break out of the squeeze phase and break into high volatility for the foreseeable future.

However, the alt formed a falling wedge-like structure as momentum shifted to the sellers.

An immediate close above the pattern seems rather unlikely due to the POC and EMA resistance. The alt could see a slow phase near the POC region. Any recovery beyond the POC would help buyers test the $0.0121 level.

A recovery from the 61.8% support level could give the bulls much-needed strength to reverse bearish tendencies. Any drop below this level or the 200 EMA (green) would ignite short circuit signals. In this case, the targets would be in the $0.01053 mark.

rode

Source: TradingView, SHIB/USD

The RSI has been heading south for more than five days now. An inability to break ties from the midline would help sellers impose drawdowns.

But the OBV’s higher troughs have diverged bullishly over the past two days with price action. A short-term recovery from immediate support therefore seemed plausible. The directional trend of the altcoin [ADX] seemed essentially weak.

Conclusion

Given the confluence of the 61.8% level and the 200 EMA support, the bulls were able to hold their direct ground. Any close above the POC could reconfirm buy signals. The goals remain the same as discussed.

But the alt shares a whopping 92% 30-day correlation with Bitcoin. Therefore, it can be essential to monitor Bitcoin’s movement with general market sentiment to identify any bullish nullities.



This post Master plan for SHIB traders to sail through bearish phase

was published first on https://ambcrypto.com/master-plan-for-shib-traders-to-sail-through-bearish-phase/

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