Chart by TradingView
Key Support level: $0.000050; $0.000044
Key Resistance level: $0.000055; $0.000063
SHIB’s volatility and volume have been low in the past few days, indicating that a consolidation period is taking place before it can make another move. Usually, when the price is stuck within a tight range, it anticipates a major breakout. Until then, the price has formed a range between the $0.000050 support and $0.000055 resistance levels.
The fact that SHIB managed to exit the descending triangle shows that the downtrend has stopped, at least for now. If bulls come in force, they can push SHIB back on the uptrend.
Trading Volume: Volume has remained low after the breakout from the descending triangle. This can be the calm before the storm.
RSI: The RSI has remained around the 50 points level and market forces appear in a pause before they can push RSI in either direction.
MACD: While the MACD completed a bullish cross on the 4-hour timeframe during the breakout from the descending triangle, the momentum that followed was weak. However, on the daily timeframe, the MACD is painting higher lows on the histogram, indicating that a bullish trend may return soon.
The bias on SHIB is neutral at this time. While the breakout from the descending triangle was a bullish signal, the momentum was not there to sustain an uptrend. A break of the key resistance at $0.000055 is required to turn bullish again.
It’s likely to see SHIB consolidate between the current key support and resistance levels. The price needs to break away from this range to be able to get back into an uptrend. As volatility and momentum decrease, the likelihood of a sharp breakout increases. It’s time to be patient and keep a close eye on the key resistance level.
