As of the latest data, Shiba Inu (SHIB) has shown a bearish trend, yet the decreased trading activity lately has left market participants cautious. Currently, the bullish and bearish forces seem to be in a stalemate, with neither side dominating in the recent period.
The memecoin appears to be on the verge of a potential shift based on the direction of Bitcoin (BTC). A breach below the nearby key support level may trigger a downtrend towards $0.000017 or even lower.
Shiba Inu Poised for a Potential Climb to Recent Peaks
Shiba Inu has established a short-term trading range between $0.0000211 and $0.0000246. The lower end of this range aligns with a strong support level from June 2024. The consolidation around the critical 61.8% retracement level does not clearly signal bullish momentum on higher time frames.
Trading volume has been declining over the past few weeks, with SHIB hovering around $0.00002325 and forming a consolidation pattern. This decrease in volume indicates that traders are awaiting a clear market direction before making significant moves.
The Relative Strength Index (RSI) on the daily chart is below the neutral 50 level, indicating the presence of bearish momentum. Despite this, the On-Balance Volume (OBV) has not made new lows in the last three weeks, suggesting a balance between bulls and bears and giving buyers some optimism.
Key Resistance Levels Add to Short-Term Challenges
The analysis of liquidation points highlights two critical levels for SHIB traders. The levels of $0.00002117 and $0.00002312 represent significant liquidation clusters and coincide with the range’s lower boundaries and the 61.8% Fibonacci retracement level.
A move towards either of these levels will be pivotal for Shiba Inu’s future trajectory. Based on the current trading volume and market sentiment, a breakout above these levels remains uncertain. However, considering the technical indicators, a move towards the higher end of the range at $0.00002464 is a plausible scenario.
Disclaimer: The views expressed in this article are not intended as financial advice and are solely the opinion of the author.