Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
Shiba Inu has established itself as one of the popular meme coins alongside Dogecoin in recent months. At one point, it was in the top 10 by market capitalization, having outpaced Dogecoin for a while. At the time of writing, it was ranked #14 on CoinMarketCap. Recently, Shiba Inu executives unveiled the mint’s Shiberse, where 99,000 lots of digital real estate would be launched.
SHIB-1D
Source: SHIB/USDT on TradingView
Digital real estate prices have skyrocketed, but the same can’t be said for SHIB in the past few months. There has been a pronounced downward trend for Shiba Inu since last November, but the coin showed that this downward trend may have stalled.
On the price charts, we can see that the $0.00003319 and $0.00002045 resemble the highs and lows for SHIB in recent months. In addition, the $0.00002512 demand area has been respected for the past week, although $0.00002717 has acted as a resistance.
When a longer-term trend shifts, there is often a prolonged period of sideways trading, in what is called an accumulation phase. This gives larger market participants time to acquire the asset before it makes the next upward move. However, unless $0.00003319 is flipped to support, the trend cannot be assumed to be bullish.
rode
Source: SHIB/USDT on TradingView
The RSI has been below the neutral 50 lines from mid-November to early February. The rally earlier this month didn’t cause the market structure to turn bullish, but it did show that a range may have formed. At the time of writing, the RSI has exhibited weak bearish momentum.
The CDV has been in the red at $0.00003319 for the past few days after the rejection. Chaikin cash flow was also below -0.05, showing significant capital outflow from the market.
Conclusion
The formation of a range, and the idea that SHIB might be in an accumulation phase, seemed plausible. However, the crypto market could decide to take a southerly turn in the coming weeks if war news worsens and further fears investors. Until then, the $0.00002060 and $0.000025 could provide longer-term buying opportunities, aiming for $0.00003319 to withdraw profits.
This post What to do with Shiba Inu’s possible entry into an accumulation phase?
was published first on https://ambcrypto.com/what-to-do-next-with-shiba-inus-possible-entry-into-an-accumulation-phase/
