Shiba Inu investors might want to wait for another leg lower before buying
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.
Bitcoin [BTC] has been largely static on the price charts for nearly a month now. It has ranged from $20.4k to $18.6k over the past month. A 10% range was more than enough opportunity for traders, but the longer-term trend remained bearish. This was true for Shiba Inu [SHIB] as well.
Here’s AMBCrypto’s Price Prediction for Shiba Inu [SHIB] in 2022
Anticipation for the Shiba Eternity game and the listing on BitMEX did not have too much of a positive impact on the price. Trading volume was witnessed a low in recent weeks due to the absence of a significant trend.
Source: TradingView
On the price charts, SHIB had a bearish outlook from November 2021. In August, the price dramatically broke above the $0.000013 resistance mark. Yet, it was pushed back down within a week of the breakout.
Since mid-August, the Relative Strength Index (RSI) slipped below neutral 50 to highlight the bearish momentum. The price has also made a series of lower highs as lower lows to denote a downtrend in progress. During this time, the On-Balance Volume (OBV) was flat, which suggested sellers might not be as voluminous as the price chart made it appear.
A key level in recent weeks was the $0.0000117 (dotted white). This level was a short-term support in August, but has since been converted to a resistance level. Highlighted by the red box, a bearish order block had developed in this region.
Hence, a revisit to this order block can offer a shorting opportunity targeting the support levels at $0.0000094 and $0.0000074. Invalidation of this idea would be a one-day session close above $0.0000117.
Source: Santiment
The downtrend
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