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Shiba Inu can reject this bearish disposition only if…

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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

Source: TradingView, SHIB/USD

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.


Source: TradingView, SHIB/USD

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.


With a background in financial analysis and reporting, Yash is a full-time journalist at AMBCrypto. He has a keen interest in blockchain technology, with a primary focus on technical analysis of cryptocurrencies.
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