Shiba Inu Anticipates a Bearish Trend Retracement
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Price Analysis: SHIBUSD Bullish Momentum Anticipates Temporary Retracement Amid Overbought Conditions
Shiba Inu continues its upward trajectory, reversing from the $0.00001250 support level and establishing a robust bullish trend. This ongoing momentum has resulted in a series of higher highs, with the latest significant breakout surpassing the $0.00002180 supply level. This price action marks a recovery phase following a prolonged bearish trend observed from March 2024 to August 2024, during which SHIB/USD formed a major high in March before descending to its last low in August.
Shiba Inu Key Levels
Demand Levels: $0.00002180, $0.00001250
Supply Levels: $0.00002960, $0.00003660
The reversal from the August low has sparked a bullish rally, with the price now targeting a March 2024 major high as it seeks to establish a new peak. However, in the 4-hour timeframe, a notable failed high was observed as the price breached the $0.00002960 level. This suggests potential exhaustion in bullish momentum, signaling a possible retracement.
Adding confluence to the anticipated retracement, the Relative Strength Index (RSI) on both the daily and 4-hour charts indicates that SHIB/USD is in the overbought region. Such readings typically align with a slowdown or reversal in price action as bearish pressure begins to surface.
Market Expectation
While bearish momentum appears imminent, it is expected to be short-lived. The prevailing bullish trend remains intact, suggesting that the retracement could serve as a healthy correction within the broader upward movement. On the 4-hour timeframe, the bearish move is likely to target the filling of a Fair Value Gap (FVG). Once this gap is addressed, SHIB/USD is anticipated to resume its bullish trajectory, aiming for higher price levels.
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