Key Insights
Shiba Inu has been a challenging asset for traders due to its lack of a clear price direction. Despite this, swing traders have been able to capitalize on buying and selling opportunities at key support and resistance levels within its range-bound price action.
Over the past six months, Shiba Inu [SHIB] has been trading within a range without a strong trend on higher timeframes. Currently, it is showing a bearish bias on lower timeframes and is likely to experience further downward movement despite some buying pressure.
Recent data from CoinMarketCap indicates a 18.8% decrease in the market capitalization of meme coins over the last month. Dogecoin [DOGE], the leader in this sector, has also been trading within a range since March, with a failed attempt at a bullish breakout in mid-July.
Shiba Inu Breaks Below Mid-Range Level – What’s Next?
Source: SHIB/USDT on TradingView
On the 1-day chart, key swing points for Shiba Inu are identified at $0.00001765 and $0.00001028. The Chaikin Money Flow (CMF) indicator is showing a gradual increase but is still below +0.05, suggesting the presence of buying pressure without being overwhelming.
Furthermore, the mid-range level at $0.00001328 has recently acted as resistance, indicating a high probability of a further price decline towards the range lows.
Source: SHIB/USDT on TradingView
Looking at the 4-hour chart, there is some optimism as the Awesome Oscillator indicates bearish momentum while the CMF is above +0.05. Short-term support and resistance levels are identified at $0.00001184 and $0.00001415, with a potential buying opportunity upon a retest of the former level.
Traders should be cautious of a drop below $0.0000116, signaling weak bullish momentum, and consider closing long positions in that scenario. Similarly, a retest of the range lows at $0.0000105 could also present a buying opportunity.
Please note: The information provided is the author’s opinion and should not be considered as financial, investment, or trading advice.