Shiba Inu’s near-term outlook is looking favorable as it attempts to extend its rally to higher levels. A buy trade was available on the lesser time frame but entry and exit points needed to be precise to mitigate MACD’s bearish threat. At the time of writing, SHIB traded at $0.00002605, up by 1.2% over the last 24 hours.
Shiba Inu 4-hour Time Frame
A clear uptrend can be spotted on Shiba Inu’s lesser time frame once its price action is isolated from 24 February. A chain of higher highs and higher lows were in motion, with SHIB targeting a new higher low at the 78.6% Fibonacci level at $0.00002531. A successful rebound would carve a path for a new peak on the chart.
The lesser time frame spotted a prominent resistance barrier between the 50% and 61.8% Fibonacci levels. Once the barrier is overcome, SHIB can retest 7 February’s high of $0.00003533. Overall, the said hike would account for a 36% increase from SHIB’s press time level.
The outcome was backed by an ongoing recovery on the 4-hour RSI. The RSI found support at 50 and pointed north at the time of writing – a sign that bulls were hesitant to give up market control. The Directional Movement Index also preserved its bullish bias after avoiding a crossover between the -DI (orange) and +DI (blue) lines. The DMI is used to measure the strength of a trend and carries a bullish tone once the +DI line trades above the -DI line.
On the downside, the MACD’s bearish crossover did not concur with readings on the RSI and DMI. Hence, a southbound move should not be overlooked. If the price does slip below an earlier swing low of $0.00002287, investors must prepare for an extended correction. A demand region between $0.00001850-$0.00001710 would be SHIB’s best bet at a recovery in case of a prolonged drawdown.
Price Strategy
Since the majority of the indicators used presented a favorable argument, placing a buy order on Shiba Inu could be fruitful over the coming sessions. However, risks must be managed through a tight stop-loss since bearish threats were also visible.
Buy orders can be placed at the 50% Fibonacci level at $0.00002530 and take-profit can be set at $0.00003533. A stop-loss should be kept just below $0.00002287. The trade setup carries a risk/reward ratio of 4.13.