Will Shiba Inu (SHIB) prices bounce back to the $0.00002332 resistance as RSI divergence sparks bullish optimism?
With Dogecoin down 3% in the last 24 hours, Shiba Inu experienced a similar decline. Shiba Inu’s seven-day yield now stands at -7% in a bear market, pushing its market price closer to the psychological level of $0.000020.
With a market capitalization of $12.51 billion, Shiba Inu remains the second largest coin. However, broader market conditions continue to create uncertainty over the SHIB price trend.
Shiba Inu Price Analysis
On the 4-hour chart, Shiba Inu price action is showing an unsuccessful attempt to break through a resistance trendline. This also highlighted a strong supply zone near the 50% Fibonacci level at $0.00002489.
Additionally, the bearish reversal of this local resistance caused the price to drop below the 38.20% Fibonacci level at $0.00002322. Currently, Shiba Inu is testing bullish support at the 23.60% level at $0.00002130, as well as the critical psychological level at $0.000020.
With several rejections of lower prices, Shiba Inu has entered a short-term sideways phase. The bearish pressure also pushed the 20-EMA line below the 50-EMA, confirming a bearish alignment between the moving averages.
However, the 4-hour RSI entered the oversold zone and has since stabilized. This shows minor bullish divergence, which increases the possibility of a potential reversal.
SHIB Price Targets
Based on the previous price action at the end of December, Shiba Inu could begin a new consolidation range, which is expected to fluctuate between the Fibonacci levels of 23.60% and 38.20%.
Currently, the Shiba Inu market price stands at $0.00002121, close to the 23.60% Fibonacci level. If price retests these levels, it could challenge the upper limit of the potential consolidation range at the 38.20% Fibonacci level.
On the other hand, a bearish close below the $0.000020 psychological zone. could lead to a further decline towards $0.00001853.
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