Even though macro developments may have created noise on Shiba Inu’s chart, the price action still shows a clear trajectory. The brief period of gains was offset by a larger downtrend on the 4-hour chart. The current trend projected a new lower at $0.00002010, suggesting an end to a brief rally. At the time of writing, SHIB traded at $0.00002450, up by 10% over the last 24 hours.
Shiba Inu 4-hour Time Frame
Shiba Inu’s price was interlocked within a supply zone of $0.00003250-$0.00002880 for most of February. A decline and subsequent retest of the said supply zone that occurred on 19 February failed to culminate into an upwards breakout. The development showed that bulls lacked the number to advance to December 2020 levels.
Since the rejection, Shiba Inu has been within a clear bearish bias. The price formed a chain of lower highs and lower lows and shifted beneath weak near-term supports at $0.00002738 and $0.00002514. The sentiment was more evident on the SuperTrend Indicator (red) which has not created a single buy sign over the past two weeks. Based on the current predicaments, a fresh lower low was expected at $0.00002010.
However, bulls can disrupt the trend by triggering a rebound within $0.0000228-$0.00002341 support. The resulting move can create a swift comeback to the 61.8% Fibonacci level, although the supply zone would have to be overturned for an extended recovery.
Indicators
SHIB’s price action put a ton of pressure on some key of its key indicators. For instance, the 4-hour RSI has not climbed above 50 since 17 February as bears have dominated the market. Another rejection at the mid-line but all but confirm the next leg downwards.
Similarly, the MACD has languished below equilibrium since 19 February. Multiple bullish crossovers were discounted as the price failed to create a higher high.
Conclusion
Shiba Inu was on course towards $0.00002010 over the coming sessions. A series of lower highs were active and the indicators carried a bearish tone. To invalidate the bearish thesis, bulls had to initiate new longs within $0.00002341-$0.0000228. In either case, the upside would be limited till SHIB closes above its supply zone.