Shiba Inu’s market can be characterized by weak buy volumes, short-bodied candlesticks, and a major resistance trendline that has been active since October 2021. SHIB’s bearish bias is indeed threatening, especially if the price weakens below an important demand zone.
Considering uncertainties in the broader market, buying SHIB at its press-time level is risky and safer bets should be placed once the price recovers above $0.00003454. At the time of writing, SHIB traded at $0.00002924, down by 0.55% over the last 24 hours.
Shiba Inu 4-hour time frame
Shiba Inu’s market has lacked a significant rally for quite some time now, with the last surge observed between 20-24 December. Since then, sellers have reigned control while the SHIB’s price has obeyed a resistance trendline for well over two months. Currently, SHIB’s only saving grace was a demand zone between $0.00002929-$0.00002854. The region has held strong since early December and was resisting another breakdown attempt. Should SHIB weaken below this defense, the market would be at risk of a 14%-28% drawdown, with the closest supports available at $0.00002428 and then $0.00002061.
To generate any kind of upwards momentum, SHIB would first need to overtake $0.00003273-resistance and the 50-SMA (yellow). An uptrend can only start once SHIB closes above the upper resistance trendline and $0.00003454-resistance.
Indicators
Much like SHIB’s price, its On Balance Volume has also declined steadily since October 2021. The OBV, which is calculated using buy volumes and sell volumes, moved along a resistance trendline of its own and immediate recovery was nowhere in sight. Moreover, SHIB faced the threat of short-selling since both MACD and RSI traded below their respective half-lines.
Conclusion
A single-price region separated Shiba Inu from another threatening sell-off. SHIB’s demand zone between $0.00002929-$0.00002854 hasn’t been breached since December but would continue to face bearish attacks over the coming week. Hence, observers should maintain caution and place long bets only when the price closes above $0.00003454.