Cryptocurrency

Would Shiba Inu descend lower on the price charts after a rejection at this zone

Disclaimer: The findings of the following evaluation are the sole opinions of the author and shouldn’t be thought-about funding recommendation.

Bitcoin held on to the $38k stage as assist however has seen consecutive shallow bounces from the assist stage in the previous ten days. If BTC falls beneath this assist stage, it may usher in one other wave of promoting for the altcoins. Shiba Inu, which was already toiling below a downtrend, may submit additional losses if such a situation unfolds.

SHIB- 1 Hour Chart

Source: SHIB/USDT on TradingView

The price motion has been on a regular downtrend in the previous two weeks, apart from a surge to $0.000025 which was shortly reversed. This was one more growth that highlighted bearish power.

The Volume Profile Visible Range device was employed for the previous ten days of buying and selling. It confirmed the Point of Control to lie at $0.00002434, and the Value Area Highs and Lows (white) at $0.00002462 and $0.00002096 respectively. At the time of writing, SHIB slipped beneath the Value Area Lows and in addition retested it as a resistance.

The ranges talked about above are near excessive quantity nodes, which suggests that they’re more likely to act as sturdy assist or resistance.

Rationale

Shiba Inu set to descend lower on the price charts after a rejection at this zone

Source: SHIB/USDT on TradingView

The RSI on the hourly chart climbed above impartial 50, but it surely stays to be seen if the indicator can keep above 50. If SHIB is certainly rejected at the $0.000021 mark in the coming hours, one other wave of promoting will be anticipated.

The Awesome Oscillator tried to climb previous the zero line however, at press time, has not managed to take action. Hence, the momentum indicators confirmed impartial or weakly bearish momentum.

The OBV shed gentle on the regular promoting stress behind SHIB in the previous few days. The bounce from the $0.00002 stage didn’t see a massive spike on the OBV, which meant the bounce was indicative of additional losses to come back and never a reversal in the downtrend.

Conclusion

The price motion was strongly bearish for SHIB on the lower timeframes, whereas the OBV highlighted regular promoting stress and a distinct lack of demand for SHIB. Therefore, it was possible that SHIB would dip beneath the $0.00002 mark as soon as extra.

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