SHIB is about to rally as buyers step in
In higher time frames, Shiba Inu (SHIB) has hit the critical area of $ 0.000029. It shows that buyers have stepped in and a rally could begin in the coming days. Since then, SHIB has risen nearly 26% to hit the resistance at USD 0.000378.
Two sets of Fibonacci retracements were used, gray from the high of $ 0.0003785 to the low of $ 0.0000284 and yellow from the low of $ 0.0000284 to the high of $ 0.0003987. The two sets of retracement have a confluence (overlap) in the range of $ 0.00034.
The USD 0.00034 level is also a Point of Control (PoC) marked by the Visible Range Volume Profile. A price above this level indicates short-term bullish strength. Just as the price slipped to $ 0.0000357, purchases were made to push the price back into the resistance area of $ 0.000037 (red box).
This area also has retracement levels following recent SHIB moves along with important levels in the lower time frames. Hence, SHIB can move sideways for a while before expanding.
The RSI climbed above a neutral 50 but was turned down pretty quickly. This could cause the SHIB to fall again (around 4%) in the $ 0.000355 area.
A CMF above +0.05 suggests continued inflows into the market and buyers have held onto their added strength for the past few days.
Momentum has stalled but buyer strength remains which means the SHIB is likely to consolidate at / below $ 0.000037 for a while before starting another rally.
Bitcoin will also have some impact on the Shiba Inu’s price development. In the short term, SHIB momentum is neutral and a return to $ 0.000035 is likely. If Bitcoin continues to recover / stabilize above USD 50.8k, SHIB has a chance to move higher.
The 61.8% extension of the move from the low of $ 0.0000282 to $ 0.000047 is encountering higher timeframe resistance and underpinning these (yellow) Fibonacci retracement levels.
Here you can see the SHIB prices.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.