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Shiba Inu likely in an accumulation phase as it bounces within a range

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On the daily chart, Shiba Inu continued to range between $0.027 and $0.037 (SHIB prices written as “current price x 1000” to use fewer decimal places). Trading volume was also low. Bitcoin rallied over the past week, and SHIB followed Bitcoin and it hauled itself off the $0.029 lows.

However, the market conditions for Shiba Inu shifted from a downtrend over November, into one of possible accumulation in December. An event could hype SHIB once more (perhaps a Musk tweet) and would likely be the catalyst of a breakout.

SHIB — 1-day chart

Source: SHIB/USDT on TradingView

The $0.029 area (cyan box) had been a place where SHIB found sellers in its late September/early October rally. SHIB pulled back to $0.023 and then rocketed upward for the rest of the month of October (“Uptober” for both SHIB and the rest of the crypto market).

The Fibonacci retracement levels plotted for the move from $0.023 lows to $0.088 highs, showed that SHIB was unable to stay above the 78.6% retracement level at $0.037. A daily candle did close above this level a few times in the past week, but SHIB was swiftly banished to lower levels.

Shiba Inu doesn’t really have fundamentals to speak of, nor any technical development news that could temporarily spur the market in either direction. For the most part, it trends alongside Bitcoin. Like Dogecoin, SHIB too has its moments when it consumes the market and sees tens of billions of dollars worth of trading volume a day.

Well, it’s worth noting that a risk-loving investor would look toward the $0.027-$0.03 area to accumulate SHIB.

Rationale

Source: SHIB/USDT on TradingView

The RSI was moving about neutral 50 and did not indicate a strong momentum in either direction yet. It did not do beneath the 35.44 level, which remained something of a doomsday level on the daily RSI. Similarly, the 65.17 level was untouched, and it can be regarded as a “To the moon!” level too.

The CMF was between +0.05 and -0.05 and showed capital flow was headed out of the market but rather weakly.  The Directional Movement Index’s ADX line (yellow) was below 20 which showed a lack of a definite trend.

Conclusion

Sideways trading on a long time horizon appeared likely for Shiba Inu. Shorter time frame trade opportunities would certainly arise, but unless the $0.037 is flipped to support, a trader/investor would likely look to buy SHIB in the $0.03 area on the chart.

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Akashnath S is a Senior Journalist and Technical Analysis expert at AMBCrypto. He specializes in dissecting price action, identifying key market trends through advanced chart patterns, and forecasting both short-term and long-term asset trajectories. His distinct analytical method is grounded in his academic training as a Chemical Engineer. This background provides him with a systematic, process-oriented approach to market data, enabling him to analyze the complex dynamics of financial markets with precision and objectivity. Having actively covered the cryptocurrency space since the landmark 2017 market cycle, Akashnath possesses years of experience navigating both bull and bear markets. This seasoned perspective is critical to his insightful reporting on market volatility and evolution. As an active market participant, Akashnath enhances his analysis with crucial, hands-on experience. This practical application of his technical skills ensures his insights are not merely theoretical, but are also relevant and actionable for an audience looking to understand and navigate trading opportunities. He is dedicated to educating readers on the nuances of technical analysis, empowering them with the knowledge to make more informed financial decisions.
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