After breaking out of a declining wedge in early September sessions, Shiba Inu’s bullish run experienced expected reversals from the resistance range of $0.0134 to $0.0138. (For brevity’s sake, we’ll increase SHIB prices by a factor of 1,000 in this article.)
Because of this, sellers returned to the market, pushing the altcoin back down into the lower Bollinger Band, signaling a potential reversal setup. A significant reversal from the resistance confluence around the BB’s basis line might derail the recent uptick in purchasing enthusiasm in the coming sessions. The price of SHIB at the time this blog was published was $0.01133.
Daily Schedule for a Shiba Inu
After initiating a big bullish breach during mid-August sessions, Shiba Inu sellers pulled the canine-themed token to the sideways track at $0.01217 – $0.0134. Further, when SHIB vacillated within this range for nearly a month, the selling pressure intensified on the support level.
With the subsequent drop, a downward channel was established, and Shiba Inu was dragged below its 20-50 Exponential Moving Average along the basis line, signaling a bearish outlook. Nonetheless, the most recent breakthrough of the bearish channel met resistance at the 50-Exponential Moving Average and $0.01217.
A bearish hammer candle also revealed sellers’ intent to drown out buyers’ enthusiasm around $0.0115-$0.012. In the next sessions, sellers may attempt to maintain their bias if the short-term Exponential Moving Average continues to trend upward.
If Shiba Inu breaks below its immediate support, it could begin a retracement that takes it to $0.0104 and $0.0108. The current drawbacks would be nullified by gains greater than $0.01217. Under those conditions, consumers might attempt to push the BB’s upper band to its limits.
The bullish momentum was quickly stymied, and the RSI was driven down into the “bearish” zone. Continued movement below the 50-day moving average would lend credence to selling pressures in the sessions ahead. Bearish divergences between the A/D and CMF indicators and the price of SHIB have also been triggered in recent days. These patterns corroborated the gloomier overall outlook.
Since the 20-50 EMA hammer candle and the resistances basis line are both bearish, Shiba Inu could see a temporary decline before rising again. Conversely, bearish invalidations may be ensured if $0.01217 is not broken through. Objectives would remain the same under any scenario. Bitcoin investors should keep an eye out for bearish invalidations.