Anticipated Shiba Inu Price Reversal Could Signal a Change in Trend
Shiba Inu (SHIB) has faced downward pressure, much like other meme coins, since the end of November. The struggle of Bitcoin (BTC) to surpass $100,000 and the resulting market volatility have not been favorable for SHIB bulls.
Despite the prevailing negative sentiment, a significant amount of 8.18 trillion SHIB was recently transferred out of the Crypto.com exchange by a whale, valued at approximately $195.1 million at that time.
Potential Buying Opportunity for SHIB at Lower Levels
An analysis of the daily chart indicates that Shiba Inu is gradually recovering from a substantial correction experienced in mid-2024. The $0.00002 level, previously a resistance, now serves as a supportive area currently.
While the recent price decline pushed SHIB below the 61.8% retracement level at $0.00002325, subsequent attempts to move beyond this level have been met with resistance, leading to a short-term consolidation phase.
On the daily chart, capital inflows are neutral and the momentum appears slightly bearish, as per the assessment of the Awesome Oscillator.
The formation of a clear short-term range is evident on the 4-hour chart, with the price briefly dropping below the range lows of $0.000021 as BTC also experienced a decline. However, SHIB quickly rebounded from this level, signaling a strong buying opportunity.
This development suggests a potentially bullish movement towards the range highs around $0.0000246 in the coming week. Nevertheless, caution is advised as indicated by the slightly negative capital flows observed via the CMF. A decisive move above the mid-range resistance situated at $0.0000228 might be challenging without sufficient buying pressure.
To manage risk effectively, traders could consider setting stop-loss orders below the recent local lows, or at $0.0000202. It is expected that any downward trend may find support near $0.0000208.
Disclaimer: This content is not intended as financial, investment, or trading advice, and represents the writer’s personal views.