Shiba Inu [SHIB] blocked at 61.8% Fib level – will sellers gain leverage
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
Shiba Inu [SHIB] has hit a critical resistance level that may impact short-term traders. Since 6 April, SHIB has traded between 61.8% ($0.00001117) and 38.2% ($0.00001087). Most of the price action was in the lower range between 200 MA (moving average) and 20 EMA (exponential moving average).
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The upswing above the 20 EMA, following Bitcoin’s [BTC] breakout and advent into $30k, has hit a price ceiling at 61.8% Fib level. It could expose SHIB to increased selling pressure unless BTC surges beyond $30k.
Source: SHIB/USDT on TradingView
At press time, the price action had retested the 61.8% Fib level ($0.00001117) thrice on the four-hour chart. If the obstacle persists and BTC fails to go beyond $30k, more sellers could be attracted to the market.
The increased selling pressure could drop SHIB to the range lower boundary at 38.2% Fib level ($0.00001087). But near-term sellers must clear the hurdle at 20 EMA ($0.000001101). The 200 MA ($0.00001077) could check an extreme downswing beyond the $38.2% Fib level.
Conversely, bulls could overcome the 61.8% Fib level obstacle, especially if BTC surges beyond $30k. Such a move could set SHIB to aim at 78.6% Fib level ($0.00001138) or the overhead resistance at $0.00001165.
At the time of writing, the RSI climbed above its equilibrium level but cooled slightly above the 60 mark – indicating buying pressure eased and could expose the market to more selling pressure. However, the ADX (Average Directional Index) moved northwards, indicating that recovery was
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