warning: The results of the following analysis are the author’s opinions only and should not be considered investment advice.
- Shiba Inu crossed out in a descending channel, can buyers cause a breakout?
- At the other end of the spectrum, open interest has shown an increased advantage to buyers.
Shiba Inu [SHIB] The long term trendline has finally flipped from resistance to support for the past 3 weeks as buyers have sought to reverse the downtrend (for brevity, SHIB prices are hitting 1000 from now).
Here AMBCryptos Shebaa Inu price forecast [SHIB] for 2023-24
Recently, the $0.00984 support caused buying back, but buyers were unable to gain an immediate advantage. Continuing swing above the current pattern may aid buying efforts to find new highs in the coming times.
At the time of writing, Ship’s stock is trading at $0.00999, up 2.96% in the past 24 hours.
Chip stock fell in an ascending channel, can the bulls cause the breakout?
SHIB’s rally from the $0.01044 level last month cleared the way for a bearish pennant setup on the daily charts. However, the 20 EMA (red) and the 50 EMA (cyan) continued to set up hurdles to recover and cause a reversal.
This reversal caused a breakdown of the pattern that put SHIB back on a downward trajectory. Meanwhile, this drop included a descending (yellow) channel.
While the 20/50 EMAs were heading south, sellers will continue to exercise their short-term advantages. A bounce from the $0.00984 support level could trigger a potential breakout above the current pattern. In this case, the range between $0.01044 and $0.01065 could undermine your long bets.
An immediate or final close above this range could expose the coin to some much-needed upside. In such circumstances, SHIB may witness a bearish reversal and test the $0.011 area. On the flip side, any decline below the immediate support may lead to a retest of the lower trend line in the descending channel.
Chaikin Money Flow (CMF) jumped above the zero line resonating as buying pressure increased. However, its higher lows in recent days have diverged negatively with the price action. However, a firm position above the midline may fuel the bullish narrative.
Increase in open interest next to price
Analysis of total open interest for SHIB futures showed an increase of approximately 5.22% in open interest over the past 24 hours. In contrast, price action posted a jump of about 3% over the same period. This reading means a bullish signal in the near term.
If buyers take advantage of this, any break above the current pattern could place a bull symbol.
In addition, the alt shared a 43% correlation for 30 days with Bitcoin. Therefore, it can be important to monitor the movement of Bitcoin with the overall market sentiment to identify potential bearish reversals.