Master plan for SHIB traders
- Post by: Irjar Jira
- July 25, 2022
- Comments off
Bullishness started at $0. The 0098-mark was the foundation for the week-long buying spree. Shiba Inu [SHIB] climbed to retest $0. 0129-level after multiple weeks. (For simplicity, SHIB prices will be multiplied by 1000 starting here.
The price action plunged below the 20 EMA(red) and the 50 EMA(cyan), but the bears took over the immediate trend.
SHIB could see near-term gains if buyers can gather enough momentum to pass the Point of Control (POC red). SHIB was trading at $0. 01135, fell by 3. 12% during the last 24 hour.
SHIB 4-hour Chart
Source: TradingView, SHIB/USD
The sellers kept creating recovery obstacles over the past five days while the 20EMA tried to climb below the 50EMA. Any bearish crossovers could hamper the near-term recovery prospects. Volumes have been falling, which is just the latest evidence. This makes the current alt position very fragile.
SHIB will attempt to end its squeeze phase, and enter high volatility in the future, with price action nearing the EMA and POC ribbons.
The alt, however, formed a falling wedge-like structure when the momentum shifted towards the sellers.
A close to the pattern may not be possible due to the EMA and POC resistance. The alt could experience a slow phase in the vicinity of the POC. Buyers would benefit from a recovery that extends beyond the POC to test the $0. 0121-level.
The bulls could recover from the 61.8% support level to counter the bearish tendencies. A drop below this level, or the 200 EMA green (green), would set off shorting signals. The targets in this scenario would be $0. 01053-mark.
Rationale
Source: TradingView, SHIB/USD
Since five days, the RSI has been heading south. The sellers would benefit from the inability to break the bonds at the midline, which would allow them to inflict drawdowns.
However, OBV’s bullishly divergent troughs were not in line with the price action of the past two days. It seemed possible that the OBV would rebound from its immediate support in the near future. The altcoin’s trend [ADX] was however, very weak.
Conclusion
The bulls may be able to hold onto their current ground due to the convergence of the 61.8% and the 200 EMA supports. Any close to the POC could confirm the buying signals. These targets would be the same as previously discussed.
The alt shares have a staggering 92% 30-day relationship with Bitcoin. To identify bullish invalidations, it is important to keep an eye on Bitcoin’s movements in relation to the overall market sentiment.
Yash has a background in financial reporting and analysis. He is a full-time journalist at AMBCrypto. He is passionate about blockchain technology and focuses his attention on technical analysis of cryptocurrency.
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