While macro developments may have created noise on the Shiba Inu chart, the price action is still showing a clear trajectory. The brief period of gains was offset by a larger downtrend on the 4-hour chart. The current trend has projected a new low at $0.00002010, suggesting the end of a brief rally. At the time of writing, SHIB was trading at $0.00002450, up 10% over the last 24 hours.
Shiba Inu 4-hour period
The Shiba Inu price was intertwined within a supply zone of $0.00003250 to $0.00002880 for most of February. A decline and subsequent retest of said supply zone that took place on Feb 19 did not culminate in an upward breakout. Development showed that the bulls did not have the numbers to advance to December 2020 levels.
Since the rejection, Shiba Inu is on a clear bearish bias. The price formed a chain of lower highs and lower lows and moved below the weak short-term supports at $0.00002738 and $0.00002514. The sentiment was most evident in the SuperTrend Indicator (red), which has not created a single buy signal in the past two weeks. Based on current difficulties, a new lower low was expected at $0.00002010.
However, the bulls could break the trend, triggering a rally to the $0.0000228-$0.00002341 support. The resulting move could create a quick return to the 61.8% Fibonacci level, although the supply zone will have to break down for a prolonged recovery.
SHIB’s price action has put a ton of pressure on some of its key indicators. For example, the 4-hour RSI has not risen above 50 since Feb 17 as bears dominated the market. Another midline bounce, but it almost confirms the next leg down.
Similarly, the MACD has languished below equilibrium since the 19th of February. Several bullish crossovers were discounted as the price failed to create a higher rally.
Shiba Inu was on his way to $0.00002010 in the next sessions. A series of lower highs were active and the indicators carried a bearish tone. To invalidate the bearish thesis, the bulls had to start new longs between $0.00002341-$0.0000228. In either case, the upside would be limited until SHIB closes above its supply zone.