Shiba Inu’s price traded at a key level – one which could determine its near-term trajectory. Should bulls combat multiple red flags and remain vigilant at the 50% Fibonacci level, SHIB would likely burst to the upside. However, it is worth noting that the indicators did not support a favorable outlook and any long setups would be extremely risky until SHIB tags a safer support zone.
Shiba Inu 4-hour time frame
Shiba Inu’s rally to $0.00002392 and subsequent retracement to $0.00002922 last week was quite significant on the 4-hour time frame. For the first time in 21 days, SHIB was able to create a new higher low, breaking off from an earlier downtrend. Now, at press time, SHIB was trading at a crucial 50% Fibonacci level on the back of a minor retracement.
If SHIB fails to snap another higher low, its price would continue to slip on the chart until a support zone is tested between $0.00002552-$0.00002718. This would also disregard SHIB’s earlier rally to $0.00002922 as just a brief surge rather than a prolonged uptrend. A new lower low could even form at $0.00002328 if SHIB weakens below $0.00002552.
However, a bullish bias would return if SHIB can claw its way back above the 4-hour 200-SMA (green). This projected 12% ascent would become determinantal for SHIB’s long-term success. For such an outcome, SHIB needed to maintain ground above the 50% Fibonacci level.
For the moment, SHIB’s 4-hour indicators were not looking great. The RSI was gripped within a downtrend while the MACD’s signal line (orange) continued to trade below the fast-moving line (blue). Such readings could generate more sell pressure until SHIB tags the abovementioned support zone.
Shiba Inu had to go against the tide to sustain above the 50% Fibonacci level. If a bullish response is not observed over the next 24 hours, the next rally would most likely take place after SHIB tags $0.00002552-$0.00002718 support.