warning: The results of the following analysis are the author’s opinions only and should not be considered investment advice
- Bearish market structure on longer time frames
- Possibility of continuing the accumulation phase
Shiba Inu [SHIB] The chart revealed that there is a possibility that it is in a prolonged phase of accretion on the price charts. It has been in a downtrend for nearly a year now and is down about 90% at press time. This downtrend was punctuated by rapid rallies, each of which sold out at the same speed.
This is the AMBCrypto price prediction for Shiba Inu [SHIB] 2022
At the time of writing, SHIB is trading just below the strong resistance level. Technical analysis indicated that a move south was likely, with key support areas identified on the chart.
The descending channel and the confluence at the Fibonacci level act as resistance
Over the past two months, the price has made a series of lower highs and lower lows on the charts. SHIB has been in a downtrend since mid-August. The $0.00000117 key level turned into resistance in September.
In early October, the bulls again tried to push prices above this resistance, but the bears were too strong. This rejection occurred at the confluence of a large horizontal level and the tops of the descending channel (blue).
When pressed, the SHIB was again in channel resistance. In addition, the 23.6% Fibonacci extension level met this resistance area. The RSI has been below 50 and has been neutral for the better part of the past two months.
In October, the OBV made lower highs but has yet to break through the support level. If it does, it will be another indication that sellers have the upper hand and another leg could come to SHIB. On the other hand, OBV recorded higher lows since July.
The exchange offer decreases in well-known exchange wallets to reinforce the idea of accumulation
The 180-day rest cycle has seen several peaks in recent months. Due to SHIB’s downtrend since last November, most of these increases coincided with strong selling.
So the conclusion was that the coins that had not moved for a while had been moved and sold. However, these peaks do not correspond to the oversupply of the stock exchanges.
In fact, the rise of idle trading corresponds to a downward movement of supply on the exchanges several times. This indicates that the coins were moved from the exchanges to refrigerated warehouses. Combined with the results from the OBV, could Shiba Inu be in an extended accumulation phase?
There are likely to be new lows for Shiba Inu on the charts. The cryptocurrency market is not in a bullish phase yet, and long-term investors may have to wait to bid at lower prices.