Buyers shifted the trend to their favor as Shiba Inu climbed higher from the January lows. For now, sellers appear to build tension around the resistance zone at $0.024. (We will multiply SHIB’s prices by 1000 to ensure concision).
A decisive close beneath the long-term Point of Control (liquidity range) would see the DOGE competitor readying to retest the trend-line support. Shiba Inu traded near the 40.02469 areas while writing these lines. The meme token surged around 3.30% within the past day.
Shiba Inu 4Hr Chart
Buyers defended the 5-month support floor at $0.018 after the crypto touched multi-month lows on January 22. Then, bulls kick-started an upward rally that saw SHIB doubling in value before falling from the long-term ceiling near $0.034.
This phase saw bulls ensuring higher troughs, whereas bears influenced the peaks. Latest price movements showed bears favoritism as the meme crypto declined in a plunging wedge and dropped under its 50-200 Exponential Moving Average. Furthermore, the 20EMA fell under the 200EMA, confirming bearish tendencies.
Sellers capitalizing on the current trend might see Shiba Inu testing the $0.023 area and extending the ongoing squeeze phase. Any potential recovery would meet a challenge around the Point of Control before bulls gather adequate strength to flip the Exponential Moving Averages.
The Relative Strength Index witnessed a massive recovery after a bullish divergence with SHIB’s price. However, the mid-line rejected this rally while sellers maintained their control over the current price action. However, the Chaikin Money Flow displayed a position that supported bulls. Reversals in Shiba Inu revival might confirm a concealed bearish divergence with the alt’s price.
A close beyond the current wedge may trigger a $0.25 retest. However, closing under the Point of Control (POC) would translate to an extended constricted phase towards $0.23 before bulls retest the falling wedge’s topside trend-line.
Nevertheless, the canine-themed crypto boasts a 94% monthly correlation with BTC. Therefore, SHIB enthusiasts should watch the leading crypto to ensure profitable moves. While publishing this content, Bitcoin traded at $42,693.72, surging 0.66% over the past day.
Stay tuned for upcoming crypto updates.