Shiba Inu (SHIBUSD) Consolidates As It Becomes Extremely Oversold
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SHIBUSD Analysis: Price Consolidates As It Becomes Extremely Oversold
SHIBUSD consolidates as it becomes oversold according to the RSI (Relative Strength Index). A reversal or retracement phase will set in as the price bounces off the discount array. The discount array is a bullish order block around the $0.000007790 support in the oversold region.
SHIBUSD Significant Zones
Demand Zones: $0.000007790, $0.000005860
Supply Zones: $0.000010160, $0.000015960
The ongoing downtrend commenced immediately after the completion of the previous market trend. The previous trend was an uptrend whose course was between the $0.000007790 demand level and the $0.000015960 supply level. The uptrend seemed to have occurred basically to invalidate the previous swing high at $0.000015180. This previous swing high of $0.000015180 was formed when SHIBUSD crashed in October 2022. In November and December last year, the RSI (Relative Strength Index) consolidated below the 50.0 level. This indicated that the bears dominated the market and did not reach an oversold state.
A bullish order block formed as the price experienced a delivery to the upside from the $0.000007790 demand level. The price surged aggressively upward until it converged into a head-and-shoulders pattern. The head and shoulder pattern formation occurred between January 17 and February 25, 2023. The neckline was broken immediately after completing the head and shoulders pattern. Following the breakout, a double top formed. Should SHIBUSD reverse to the upside now, the double top might be invalidated. The price kept crashing down as it approached the bullish order block at the $0.000005860 demand level.
Market Expectation
The selling momentum ends as SHIBUSD consolidates within a triangle pattern on the four-hour chart. The daily bullish order block is expected to cause a reversal as the price leaves the oversold state.
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