Shiba Inu has been on a decline over the past week, but something positive is happening as a result. The currency seems to be moving away from a place that previously caused resistance. This means that there seems to be a good chance that SHIB will rise further soon.
How is SHIB doing?
To analyze this better, let’s first look at SHIB’s daily chart. Here each candle represents 24 hours, giving us a good idea of the past price action. The most important price level (around a rate of 0.000024 dollars) is also clearly visible here.
As you can see, this blue zone provided support several times in March. The problem was that the highs kept getting lower. The price was pushed down by sellers, and the number of buyers (around that $0.000024) ran out. This eventually caused the zone to break at the bottom.
The question was therefore how far SHIB would fall. The currency eventually fell to a rate of around 0.0000185, after which it started to catch up. Shiba Inu was bought up well, so that – after being rejected a few times – it eventually rose above this price level again.
The reaction that followed speaks for itself. The coin managed to rise by almost 20% before starting a decline this week. With one exception, the coin produced a red candle every day. This may make it look like the memecoin is heading further down, but if the coin holds strong here, it could well push past its previous high of $0.000045 – which would represent a 90% increase.
First reaction is a fact
So there is certainly a positive scenario conceivable from here. To analyze this, we also take the 4-hour chart. Here each candle represents 4 hours, allowing us to see the price in more detail. This makes the first reaction – after the descent to this zone – clearly visible.
It is very positive to see that the coin is still responding at this level. This is usually a sign that a price level remains strong enough. There are of course exceptions to that rule, but you can respond to this when such support is not strong. So far nothing seems to be wrong.
To ensure a further increase, it would be good for SHIB to break past $0.000028. This is the location of the previous highlight. And if the price passes here, it means that the price wants to start an uptrend again.
The coin is currently between the blue zone and the blue line of $0.00028, so it remains to be seen which side the coin will choose. But the likelihood of a bullish follow-up seems higher as the initial reaction has already taken place. Therefore, keep a close eye on these price levels and price developments.
