Shiba Inu [SHIB] hinted at a potential bullish breakout on the 4-hour chart ten days ago; however, this breakout has lost momentum, leading to two retests of local lows. Instead, a new shorter timeframe pattern has emerged, resembling Bitcoin’s [BTC] indecisiveness in the market.
Anticipated Consolidation Phase For Shiba Inu
On the daily chart, the overall swing structure showed a bearish trend. To reverse this trend, a price breakout above the recent lower high of $0.0000196 would be necessary. Presently, there is little indication of an imminent breakthrough.
A support zone is evident at $0.0000147, with the $0.0000128 level proving to be a strong support area since September 2024.
As of the latest data, the daily RSI remained bearish, standing at 40. The OBV showed some improvement post the losses in early February, indicating a slight increase in buying activity. Nevertheless, this has not been adequate to drive the coin to new highs.
The 4-hour chart highlighted the range pattern. The previous structural breakout (depicted in orange) at $0.000017 turned out to be the local high. The mid-range resistance at $0.0000157 appeared as a significant short-term barrier.
Additionally, the RSI on the 4-hour chart showed a bearish stance, consistently staying below the 50 mark over the past week. A move above 50, paired with a reversal of the mid-range resistance to support, could open up long trading opportunities – with a target set at the $0.0000168 local resistance.
Reviewing the liquidation heatmap from the last month emphasized the range formation. Two liquidity clusters were identified around $0.0000145 and $0.0000176, just outside the range limits as noted on the 4-hour chart.
The concentration of liquidation levels at these prices suggested a potential price movement towards one cluster, followed by the other in the upcoming days. Hence, a retest of $0.0000145 might present a favorable buying chance, with the $0.0000175 level serving as a profitable exit point.
Disclaimer: The views expressed do not offer financial, investment, or trading advice. They solely represent the writer’s personal opinion.