Shiba Inu can reject this bearish disposition only if…
On its way up from its January lows, Shiba Inu (SHIB) buyers steered the overall outlook in their favor. The sellers are now building up tension at the $0.024-level resistance. (SHIB prices are multiplied by 1000 from here, for brevity)
A sustained close below the long-term liquidity range (Point of Control/POC) would set SHIB for a retest of its trendline support (white, dashed). At press time, the alt traded at $0.02469, up by 3.28% in the last 24 hours.
SHIB 4-hour chart
Soon after the alt hit its multi-month low on 22 January, the buyers took charge of the five-month support from the $0.018-mark. Then, SHIB bulls initiated a rally that led the alt to double its value before reversing from its long-term ceiling of $0.034-level.
During this phase, the bulls have ensured higher troughs while the bears kept the peaks in their influence. Recent movements have favored the bears as SHIB fell in a falling wedge (yellow) and fell below its 50/200 EMA. Meanwhile, the 20 EMA (red) fell below the 200 EMA and affirmed a bearish advantage.
If the sellers capitalize on the current momentum, they could aim to test the $0.023-zone and prolong the current squeeze phase. Any possible recovery from there would find a barrier at the POC before the bulls gather enough thrust to overturn the EMAs.
After witnessing a bullish divergence with price, the RSI saw a solid recovery. But the mid-line shunned this rally whilst the sellers still refrained from losing their edge on influencing the current price. Nevertheless, the CMF depicted a position that inclined toward the bulls. Any reversals in its revival could affirm a hidden bearish divergence with the price.
Any close above the current wedge could propel a test of the $0.25-zone. But a close below the POC would lead to a continued tight phase towards the $0.23-mark before the bulls retest the upper trendline of the falling wedge.
However, the meme-coin shares a staggering 94% 30-day correlation with Bitcoin. Thus, keeping an eye on the king coin’s movement remains essential for a profitable move.