Shiba Inu (SHIBUSD) Anticipates a Bearish Reversal
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Price Analysis: SHIBUSD Sets Up for a New Bearish Wave as Price Rejects the Resistance Level
In mid-June 2024, SHIBUSD experienced a bearish break of structure, establishing a consistent downtrend in the price action. This bearish trend has gradually driven the price downward toward the significant support level of $0.00001310. Multiple attempts to breach this level have failed, resulting in a period of consolidation around the support level.
Shiba Inu Key Levels
Demand Levels: $0.00001310, $0.00001010
Supply Levels: $0.00002020, $0.00002450
Toward the end of September 2024, SHIBUSD saw a brief surge in bullish momentum, driving the price to the resistance level of $0.00002020. However, this bullish movement quickly lost steam, with strong bearish pressure emerging at this resistance. A failed high pattern has formed, signaling a potential bearish reversal as selling pressure intensifies.
Technical indicators on the daily timeframe reinforce the outlook for a bearish reversal. The daily Relative Strength Index (RSI) reflects declining price strength, adding credibility to bearish sentiment. Additionally, the price has fallen below the daily Moving Average (MA), confirming a bearish signal.
In the 4-hour timeframe, the price action provides clearer insight into short-term price action. A recent shift in structure indicates a bearish trend in the short-term outlook, as well. The 4-hour chart also shows a retest of a previously established order block, which now serves as the starting point for a new bearish leg. Further reinforcing this view, the 4-hour Moving Average confirms the bearish signal, with the price positioned below the indicator.
Market Expectation
As SHIBUSD trends downward with renewed bearish momentum, the price is anticipated to retest the $0.00001310 level. This time, however, there is a strong probability that it will breach this key support level, paving the way for a deeper decline in price.
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