Shiba Inu: Here’s how SHIB could react to the ongoing skepticism in the market
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.
After declining below its EMA ribbons, Shiba Inu [SHIB] took a plunge below its five-month trendline resistance (yellow, dashed).
The current structure exhibited a bearish edge despite a break above its near-term down-channel (yellow). A potential close above or below the trendline resistance could influence the upcoming trend of the dog-themed token. (For brevity, SHIB prices are multiplied by 1000 from here on).
At press time, SHIB traded at $0.01106, down by 5.82% in the last 24 hours.
Source: TradingView, SHIB/USD
SHIB found a consolidation range between the $0.02-$0.032 for over four months while the bears kept increasing their pressure near the 61.8% Fibonacci level.
Eventually, the symmetrical triangle structure saw a down break breakout due to the token’s previous downtrend. The fall below the golden Fibonacci level registered a 60% drop toward its seven-month low on 12 May.
As a result, the distance between the south-looking EMA ribbons has been at its record high. With relatively low volumes, SHIB has been hovering near its Point of Control (POC, red) for the last three weeks.
With the reduced gap between the lower and upper bands of the Bollinger Bands (BB), SHIB could see an extended squeeze near the POC. A close above the immediate trendline resistance would position the alt for a test of the 23.6% level in the $0.013 region.
Source: TradingView, SHIB/USD
After testing the 33-mark multiple times, the RSI found its way to test its trendline resistance. This trajectory hinted at an ease in the selling pressure. But the recent bearish divergence with the price has added fuel to the
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