Shiba Inu (SHIBUSD) Consolidates Below Major Trendline as MACD Turns Bullish
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SHIBUSD Analysis: Price Consolidates Below The Major Trendline As The MACD Flips Bullish
SHIBUSD consolidates below the major trendline as the MACD flips bullish. The recent return of the MACD (Moving Average Convergence Divergence) indicator from the downside to the zero line reveals the presence of the bulls. However, the rally could end soon owing to the overall direction of the market.
SHIBUSD Significant Zones
Demand Zones: $0.00000700, $0.00000600
Supply Zones: $0.00001000, $0.00001600
The overall trend has begun its course ever since the inception of the major trendline. The downtrend followed the retraction at the $0.00001600 resistance in February 2023. Prior to the retraction, though, the direction of SHIBUSD was to the upside. The MA Cross gave a buy signal in mid-February. The succeeding expansion to the upside was truncated as the price met the accumulated sell orders at the $0.00001600 resistance. More input from the sell order caused a clear decline with no significant consolidation until the $0.00000960 low was created.
The decline became more intense as the MA Cross finally gave a sell signal. Between March 16 and April 16, SHIBUSD was consolidating just above the $0.00001000 price level. A double top was created on April 16, 2023, and prices crashed massively afterwards. This caused an invalidation of the neckline at $0.00000960 and further declined into the discount zone. The ongoing expansion of the discount zone is likely to end soon as the market’s structure still remains bearish. Moreover, the major trendline is acting as diagonal resistance, which could truncate the longevity of the emerging uptrend.
Market Expectation
The $0.00000780 equal high (EQH) has been invalidated. This took place following a retest of the four-hour diagonal support on July 12, 2023. The breaker block that came before the invalidation of the equal highs is likely to trigger a turn to the downside.
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