Shiba Inu (SHIBUSD) Declines Towards the Daily Fair Value Gap

Market Analysis: Price Declines With Anticipation of Breaching 

Since reaching its peak in early March 2024, SHIBUSD has exhibited a marked bearish trend. The asset’s decline found initial support at the $0.00002150 level, which has since been tested twice more as a reliable demand level before receding toward the trendline resistance.

SHIBUSD Key Levels

Demand Levels: $0.00002150, $0.00001450
Supply Levels: $0.00002830, $0.00003270
An examination of the 4-hour chart reveals a structural shift as SHIBUSD departed from the bearish trendline resistance. This shift was characterized by the formation of a lower low, signaling continued selling pressure. The 4-hour Relative Strength Index (RSI) has dipped into the oversold territory, presenting a divergence from the Bearish price action. This suggests a gradual accumulation of strength in the asset and could foreshadow a potential short-term bullish momentum. The short-term bullish momentum is expected to close the 4-hour Fair Value Gap.

However, despite this possible bullish anticipation, the prevailing sentiment remains bearish. Price anticipates that the bearish trend will resume after the temporary bullish correction, with a strong likelihood of breaking below the $0.00002150 support level. Should this occur, the descent is expected to extend until the daily Fair Value Gap is filled.

Market Expectation

The $0.00002150 support level and the resulting price movement will be crucial in determining the overall outlook for the pair. The breach of the $0.00002150 support level is anticipated, leading to a price decline towards the daily Fair Value Gap without any potential obstacles.

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