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

Post the early April drop of the altcoin below the baseline (green) of the Bollinger Bands (BB), Shiba Inu’s [SHIB] went south. Meanwhile, buyers have provided support to the five-month trendline resistance (yellow, dashed).

The current setup reflected the recent rise in buying pressure. Any close above or below the baseline can affect the meme token’s upcoming moves. (For brevity, SHIB prices are multiplied by 1,000 from now on). At time of going to press, SHIB was trading at $0.00928, up 13.84% in the last 24 hours.

SHIB Daily Chart

Source: TradingView, SHIB/USD

SHIB’s decline below the $0.02 level was accompanied by a drop of more than 65% toward its eight-month low on June 18. Posting a bearish triangle on the daily timeframe, an expected disturbance fueled near-term bearish tendencies.

While SHIB’s recent growth helped test the 20 EMA (red), the alt had to find a close above this level to claim a bullish edge. As the gap between the 20/50 EMA has widened significantly, the buyers would also like to step in.

Given the current market dynamics, a reversal of the 20 EMA SHIB could pull towards its trendline support near the $0.0079 level. Should a sudden spike in buy volumes occur, any breach above the 20 EMA could help the alt test in the $0.01082-$0.01156 range.

rode

Source: TradingView, SHIB/USD

After testing the 33 mark several times, the RSI finally moved towards equilibrium. From here, any reversal would confirm the bearish divergence on the index with the price action.

Similarly, OBV’s lower spikes confirmed the possibility of a bearish divergence with price. Furthermore, the Aroon up (yellow) indicator was still at the 0% level. Until it sees a steep rebound, placing long bets may not be profitable.

Conclusion

Given the potential of bearish divergences on the RSI and OBV and the 20 EMA resistance, SHIB could hit a barrier and test the $0.0077 zone.

However, the alt shares a staggering 91% 30-day correlation with Bitcoin. Therefore, keeping an eye on Bitcoin’s movement with general market sentiment can be essential in order to make a profitable move.



This post SHIB traders should look for a slot above this level before placing bets

was published first on https://ambcrypto.com/shib-traders-should-look-for-a-close-above-this-level-before-placing-bets/

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