Shiba Inu Price Analysis: Key Levels to Watch Amidst Bearish Signals
The 4-hour chart for the Shiba Inu price shows a struggle between bullish momentum and bearish pressure, with the recent action reflecting this ongoing tug-of-war. After a series of lower closes, the Shiba Inu price has been trending downwards, finding itself hovering just above critical support levels.
Shiba Inu Price Prediction
The 9 EMA and 20 EMA are currently in a state of convergence, with the 9 EMA slightly above the 20 EMA. This indicates that the short-term trend is still holding, though just barely. The slight crossover suggests that the Shiba Inu price could be on the brink of a more significant move, but the current trajectory seems to favor the bears as the EMAs begin to flatten out.
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Meanwhile, the MACD, which is traditionally a momentum indicator, is showing signs of weakening bullish momentum. The MACD line is slowly drifting toward the signal line, with the histogram values shrinking. This development hints at a possible bearish crossover in the near term, which could lead to further downside pressure if confirmed.
The RSI, which recently peaked at over 81, has been declining steadily, now resting at 56. This drop from overbought conditions signals a cooling-off period, possibly leading to a reversal or consolidation for the Shiba Inu price. The fading RSI suggests that bullish momentum has significantly weakened, leaving room for sellers to push the price lower.
When it comes to key levels to watch, the Shiba Inu price is currently trading near the support zone around $0.00001502. Should this level fail to hold, the next critical support lies at $0.00001399. A break below this level could open the door for a sharper decline, potentially testing the deeper support at $0.00001364.
On the upside, the Shiba Inu price faces stiff resistance at $0.00001659. This level coincides with the recent highs, where sellers have previously emerged. A break above this resistance would be required to reignite bullish momentum. However, given the current technical indicators, this appears challenging in the immediate term.
Possible Shiba Inu Trade Approaches
For traders looking to capitalize on this setup, a cautious approach is recommended. If the Shiba Inu price breaks below the immediate support at $0.00001502, it may present an opportunity for short positions, targeting the next support at $0.00001399. On the other hand, a successful break above the resistance at $0.00001659 by the Shiba Inu price could offer a potential entry for long positions, with a target towards $0.00001670.
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However, given the mixed signals from the technical indicators, it is crucial to wait for confirmation before entering trades. Monitoring the MACD for a clear crossover and the RSI for signs of reversal from oversold conditions will be key in making informed trading decisions.
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