After a decline, Shiba Inu has again arrived at an important resistance (around the price of 0.000024 dollars). Here the currency has to make a choice: will it go up again from here, or will it be rejected and start a further decline? Let’s look at the graphs.
SHIB’s most important price level
We start this analysis with the daily chart. Here each candle represents 24 hours, so we get 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.
The blue zone has been important before. It provided support several times in March, but then the coin faced the problem of highs getting lower and lower. The price was pushed down by sellers, and the number of buyers around $0.000024 ran out. The result was a break at the bottom of the zone.
Since then, the currency has fallen well below this zone, but it has also picked itself up again. When Shiba moved back above this zone, the currency responded with a nearly 20% rise to $0.0000282 before starting a decline again.
The coin then dropped below this again, but we managed to regain this level again. Now that the currency is back at the bottom of this zone, it can hopefully rise through this zone one more time. Otherwise, a very negative scenario could occur. The coin is not making lower lows, but it is not making higher highs either, indicating uncertainty. As a result, this zone now seems to decide where SHIB’s price will go.
SHIB has to decide here
To analyze this better, we will also look at the 4-hour chart. Here each candle represents 4 hours, allowing us to see the price in more detail. We see that the price – despite the movement through the zone – still responds to this price level.
The currency would therefore have to make a choice here to resume this level, allowing a further rise, or the currency will continue to decline from here. In the positive scenario, the coin must also rise past its previous high to break the downtrend.
In other cases, SHIB will continue with this (negative) trend. This makes the currency look very uncertain, and it is good to wait for a clearer response before being able to say more about the future direction of the currency. It is therefore important to keep a close eye on the trend, together with this price zone.
