Chart by TradingView
Key Support level: $0.0000237
Key Resistance level: $0.0000350
Shiba has failed to break above major resistance at $0.0000350, and ever since, the price has corrected, forming a pennant (in blue). The indicators show that the cryptocurrency could decrease to the support at $0.00000237 if the price breaks below the pennant.
Pennants can also be continuation patterns. However, in the current market condition, Shiba is looking more likely to fall lower before any resumption of the uptrend. Right now, the price is sitting just above the Fibonacci 23.6 % level, which acts as local support within the pennant.
Volume: It saw a significant decrease after failing to overcome the abovementioned resistance level. For this reason, the short-term bias seems a bit bearish. Volume needs to pick up again to change the bias to bullish.
RSI: On the four h timeframe, RSI is forming lower highs which can be considered bearish until a reverse.
MACD: On the 12h timeframe, the MACD moving averages are about to complete a bearish cross, and the histogram has already crossed on the negative side. This is also short-term bearish.
The short-term bias is bearish due to the technical factors mentioned above. However, to get confirmation, the price needs to break below the blue pennant. Once that is confirmed, the bias would be further justified, and the price might fall to the key support formed around the 38.2% Fib retracement level. If the price breaks above the pennant, the idea would be invalidated, and we may see a new rally to the key resistance level.
The key support and resistance levels give good targets for Shiba in the short term. Longer-term, any bullish bias has to be confirmed by a clean break of the resistance, which should be turned into support. Only then can we explore new Fib targets. A 1-to-1 extension on our current structure would give a target of $0.0000500 in case the bullish scenario is confirmed. This can be revisited once the pennant is broken in any direction.
The above analysis was written by DU09.
