Shiba Inu (SHIBUSD) Remains In A Consolidation Zone As Price Fails To Sink Lower
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SHIBUSD Analysis: Market Remains In A Consolidation Zone As Price Fails To Sink Lower
SHIBUSD remains in a consolidation zone as the price fails to sink lower. The overall direction of the market on the daily chart remains bearish. However, the market is currently in consolidation as the price remains in an oversold state. The consolidation began on September 11, 2023, after an extensive decline into the $0.00000700 demand zone.
SHIBUSD Significant Zones
Demand Zones: $0.00000700, $0.00000600
Supply Zones: $0.00000880, $0.00001130
The massive decline that ensued in April 2023 followed a short period of consolidation about the $0.00001130 resistance level. The decline continued into a base as SHIBUSD consolidated again around the $0.00000880 price level. Before the formation of the base, a Fair Value Gap (FVG) had formed on April 20, 2023, as prices dropped aggressively. Following the base formation at the $0.00000880 price level, SHIBUSD continued more aggressively to the downside.
A local low formed at $0.00000600 as the price reverted exuberantly alongside a diagonal support. The impact of the buying pressure from the discount zone drove the price of Shiba Inu to the upside. The emerging uptrend continued in fractals until price returns into the FVG, which had earlier formed on April 20, 2023. The bears returned to the market from here as the price declined downward, breaking the diagonal support to the downside. On September 11, 2023, SHIBUSD converged within a consolidation zone. A major correction is likely to emerge soon, as the Stochastic Oscillator already reveals that the market is oversold.
Market Expectation
After the formation of the four-hour high at $0.00000770, the price of Shiba Inu dropped notably to the downside. The downtrend continued until the invalidation of the previous low at $0.00000720. SHIBUSD is likely to head upward into the premium zone before the market’s downtrend continues.
