Shiba Inu (SHIB): The Only Way to Reject the Bearish Disposition

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.

Final Thought

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.