Shiba Inu Price Breaks 2-Month Downtrend, Eyes New Peaks
08 Februar 2024 - 5:00PM
NEWSBTC
The Shiba Inu (SHIB) price has emerged from a persistent downtrend
that dominated the past two months. A detailed analysis of the
daily and weekly (SHIB/USD) charts indicates a series of critical
technical factors that are currently influencing SHIB’s price
movements. Shiba Inu Bulls Take Over On the daily chart, SHIB has
broken through the upper boundary of the descending channel pattern
that had been in place since the high at $0.00001193 reached in
mid-December last year. This channel, characterized by lower highs
and lower lows, had been containing the price action, but a recent
surge in volume and buying pressure has allowed SHIB to breach this
confinement. The breakout was confirmed by a close above the
200-day Exponential Moving Average (EMA, blue line), which is now
acting as a support level. However, with the 20-day, 50-day, and
100-day EMAs converging just above current price levels (between
$0.00000912 and $0.00000932), the bulls still have some work to do.
Related Reading: Meme Coin Blues: Nearly 70% Of Shiba Inu Investors
Underwater As Price Flops Notably, the Fibonacci retracement
levels, drawn from the peak to the trough of the recent major move,
reveal the following key price levels: the 0.236 level at
$0.00000878 is still the most important support, followed by the
0.382 level at $0.00001050, the 0.5 level at $0.00001189, and the
0.618 level at $0.00001328 as the next crucial price targets. These
levels often act as resistance during recoveries and, as such, are
important targets for traders to watch. The Relative Strength Index
(RSI) on the daily chart is hovering around the 51 mark, indicating
a neutral momentum with a slight bias towards buying pressure. This
leaves room for the RSI to climb before reaching overbought
conditions, which are typically considered to be above the 70
level. Related Reading: Timeline For All Shiba Inu Projects
Revealed As SHIB Price Readies To Soar End Of The Consolidation
Phase? On the weekly time frame, a larger trend line, which is
providing support derived from an ascending triangle pattern,
suggests a longer-term bullish sentiment underlying the recent
bearish phase. This support line is critical as it has been
respected numerous times in the past, making it a significant level
for long-term holders. A decisive weekly close above the 20-week
EMA at $0.00000904 this Sunday could pave the way for significant
momentum. Subsequently, attention shifts to the 50-week EMA at
$0.00000970, signaling potential further advances. The volume
profile on both time frames has been relatively high during the
breakout, providing further confirmation of the move. However,
traders should be cautious as high volume can also precede
volatility and potential price retracements. In summary, SHIB has
exhibited a clear breakout from a two-month downtrend with
immediate support and resistance levels identifiable through EMAs
and Fibonacci retracements. Traders and investors should be closely
monitoring these levels to gauge the sustainability of the breakout
and the potential for a trend reversal. Featured image from
Shutterstock, chart from TradingView.com
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