Shiba Inu (SHIBUSD) Crashes As The Price Leaves The Overbought State
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SHIBUSD Analysis: Market Crashes As The Price Leaves The Overbought State
SHIBUSD crashes as the price leaves the overbought state. According to the RSI (Relative Strength Index), the market was in an overbought state as prices rose beyond $0.00001050. As a result of the selling pressure at the premium, the price of SHIBUSD fell against the bulls. Based on the consecutive marubuzu candlesticks, the market’s direction will likely remain bearish for a long time.
SHIBUSD Significant Zones
Demand Zones: $0.00000850, $0.00000600
Supply Zones: $0.00001050, $0.00001200
In March 2023 and April 2023, SHIBUSD was ranging between $0.00001190 and $0.00000970 price levels. On April 20, 2023, a bearish order block and a Fair Value Gap formed as the price finally crashed. The crash began at the premium of the trading range, clearing the swing low formed at $0.00000970 price levels. SHIBUSD continued to crash until the $0.00000850 support rejected the price’s further decline. Owing to the rejection at the $0.00000850 price level, the market consolidated for a month.
After a month of consolidation, the decline continued as the $0.00000850 support failed to hold the price any longer. A final crash-landed the price in the $0.00000600 demand zone. A significant rejection followed as the market flipped bullish from the discount zone. SHIBUSD began a bullish expansion alongside the RSI, which also expanded upward from the oversold region. The bulls successfully drove the price into the bearish order block that formed in April 2023. The bulls have now exited the market as the price keeps crashing massively into an oversold region.
Market Expectation
A change of character to the downside has occurred on the four-hour chart. This was a result of the selling pressure from the premium zone, which invalidated the previous low. As SHIBUSD hits the $0.00000850 support level, a bullish expansion into the $0.00001000 psychological level becomes probable.
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