Mapping how Shiba Inu’s next entry trigger will play out


Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice

Shiba Inu (SHIB) saw a brief consolidation between the $0.034 and $0.018-levels for over two months. The buyers are now building up tension at its three-week trendline resistance (white, dashed). Here, do note that for brevity, SHIB prices are multiplied by 1000.

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If the sellers reject higher prices in the current range, SHIB will position itself for a near-term pullback towards its immediate demand zone. Following the same, any close above $0.02439 would help the alt recover towards the $0.025-zone.

At press time, SHIB was trading at $0.02446, up by 4.45 % in the last 24 hours.

SHIB 4-hour Chart

Source: TradingView, SHIB/USD

As soon as the alt hit its three-month low on 22 January, the buyers took charge at the $0.018-mark, as they have for the last five months. Soon after, SHIB bulls initiated a rally that led the alt to double its value before reversing from its long-term ceiling of $0.034-level.

As a result, the bulls have ensured higher troughs while the bears kept the peaks in their influence. This contributed to the formation of a symmetrical triangle-like pattern in the last two months. 

Recent movements have favoured the bulls as SHIB broke out of its down-channel (yellow) and crossed its 20/50 EMA. Also, the 20 EMA (red), now looking north, affirmed the near-term bullish advantage. 

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Now, $0.024 is a critical zone for the buyers to topple for them to claim a solid edge. Any close below this level would confirm the existence of a hidden bearish divergence and would stall the buying spree. The pullback would continue to rest at its demand zone before the buyers yet again challenge the trendline resistance.

Rationale

Source: TradingView, SHIB/USD

The RSI’s upturn from its oversold territory only saw the 40-mark hurdle in its swift recovery above the midline. Any close below its trendline resistance would reaffirm the hidden bearish divergence.

Nevertheless, the CMF crossed the zero line and pictured a buying edge. Also, the DMI reiterated the bullish edge, but its ADX projected a weak directional trend for SHIB.

Conclusion

The $0.024-zone is vital for the buyers to conquer for the recovery to test its 200 EMA (yellow). Before that, SHIB could likely enter into a tight phase between the $0.022 and $0.023-levels.    

Besides, the meme-coin shares a staggering 80% 30-day correlation with Bitcoin. Thus, keeping an eye on the king coin’s movement remains essential for a profitable move. 


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