Shiba Inu’s price has been holding steady above a region of demand for more than a week now. An oversold RSI and a buy signal on the MACD warranted a reaction although gains would most likely be limited at the confluence of the 20 (red) and 200 (green) SMA’s. At the time of press, SHIB traded at $0.00002067, up by 0.87% over the last 24 hours.
Shiba Inu Daily Time Frame
January has been rough for Shiba Inu. Bitcoin’s break below $36K during the month plied more pressure on the “Dogecoin killer”, which has been unable to shake off a massive downtrend that took shape during late-2021. The current buildup phase close to a demand region of $0.00001705-$0.00002067 could bear fruit this week but any upswings would likely be capped at the 20 (red) and 200 (green) SMA’s close to $0.00002520.
At the same time, SHIB needed to hold above its demand zone once a short-term rally is followed by a round of corrections. A death cross loomed large on the daily chart and short-sellers would quickly assume positions if SHIB slips below $0.00001705. The lack of liquidity below this area would magnify losses, with the next ideal support available only at $0.00000960.
Indicators
SHIB’s daily RSI has completed a full rundown from overbought levels in October to oversold in late January. Ideally, a reset should follow if investors grab SHIB below its perceived ‘intrinsic value’. In either case, it was unlikely that the daily RSI would extend above 55 given the current nature of the broader market.
An early buy signal came forth on the MACD after the Fast-Moving (blue) line eyed a crossover above the Signal line (orange). A double bottom setup threw more weight behind a favorable reading. However, it’s important to note that the MACD has strayed below its half-line since late November and a full-blown recovery was unlikely.
Conclusion
A 24%-26% short-term rally was the most bullish scenario for Shiba Inu this week. A rebound from SHIB’s current demand zone was unlikely to stretch beyond $0.00002520, especially if a death cross comes into play.