SHIBA INU is the “DOGECOIN KILLER” and is listed on their own ShibaSwap, a DEX. This meme coin quickly gained speed and value as a community of investors was drawn in by the cute charm of the coin paired with headlines and tweets from personalities like Elon Musk.
Shiba Inu aims to be the Ethereum-based counterpart to Dogecoin’s Srypt-based mining algorithm. Shiba Inu and the SHIB token are part of a swarm of dog-themed cryptocurrencies, including Baby Dogecoin (BabyDoge), Dogecoin (DOGE), JINDO INU (JIND), Alaska Inu (LAS), and Alaskan Malamute Token (LASM).
In this article, we will discuss near-term and long-term trends and our predictions are based on technical analysis, not emotions. Cryptocurrencies are highly volatile and risky so do your research before investing your hard-earned money. Here is a guide on how to buy Shiba Inu
Let's dive into the technical analysis of Shiba Inu
When we analyze the SHIB/USD price chart, we can observe that the price is trading in a long-term bearish trend channel and now the price is reaching an upper trend line of the channel. Currently, the price is taking resistance at the 100 daily MA line, which acted as the dynamic resistance for the long-term bearish trend. 20/50 MA divergence is indicating that the short-term bullish trend will continue a bit further.
Considering all these technicals, we expect the current short-term bullish trend to continue a bit further to retest the upper trend line of the long-term bearish trend, where the price will reverse its bullish trend, making a new lower swing high in the channel.
After that reversal, we expect the long-term bearish trend to continue further down, towards the base support at the .000007 - .0000075 area. Where we will see a possible long-term trend reversal.
Considering the recent consolidation area in the 4 hours chart, we can see that there is a significant resistance associated with the .0000126 - .0000128 area for the short-term bullish trend. The previous bullish triangle pattern breakout wasn’t successful as the high selling pressure around the .0000126 - .0000128 area, and the price had a false breakout because of that.
Since the short-term trend is still bullish, the price is now in the process of accumulating buying pressure to break above the .0000126 - .0000128 area for the second attempt with a Flag bullish pattern formation.
Price successfully crossing upward .0000126 - .0000128 area will drive the price into the .0000136 - .000014 major resistance area, which is the flag pattern-based target, where we expect the trend reversal to happen with a new swing high formation.
If the price couldn’t break above the .0000126 - .0000128 area, the price will cross downward .0000112 - .0000114 next support area initiating a new bearish trend. Continuation of that bearish trend can cross below the .0000103 – .0000105 support area, which confirms the bearish trend reaching the base support area in the mid-term bearish trend.
SHIB/USD bearish signals are dominant at the moment, and we expect this short-term bullish trend to reverse in the upcoming days, which will make a new swing high in the long-term bearish trend. Since the bearish technicals are intact, we can identify two short/mid-term short trading opportunities and one short-term long trade opportunity on the SHIB chart.
If the price could cross above the .0000126 - .0000128 area upward, it’s good to initiate a leveraged long position with a short-term target of .0000136 - .000014 major resistance area.
At the .0000136 - .000014 major resistance area, we expect the trend reversal to happen, so it’s good to initiate short trade positions around that area. The next best area to initiate a short position would be after crossing downward .0000103 – .0000105 support area, which will confirm the bearish trend continuation towards base support at the .000007 - .0000075 area.
The base support at .000007 - .0000075 area is a good area to initiate a long-term/ mid-term long trade position, as we expect the price to hold that base support area and long-term trend reversal to happen around that area.
SHIB needs to cross above the .0000136 - .000014 major resistance area in this short-term bullish trend to invalidate the current long-term bearish market structure and mid-term bearish trend reversal. If that happened, a new mid-term bullish trend will be initiated. The next mid-term bullish target would be around the .00002 – .000021 area where we expect the price to have significant resistance, as that area was the previous base support area for the SHIB price chart. But considering the current market conditions, this mid-term bullish trend initiation scenario has a lower probability.
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