Shiba Inu’s bullish run experienced anticipated reversals from the resistance range of $0.0134 – $0.0138 after the meme coin broke out of a declining wedge during early September sessions. (We will multiply SHIB prices by 1,000 in this article for brevity).
As a result, sellers re-joined the marketplace to drag the altcoin towards the Bollinger Bands’ lower band, welcoming a reversal setup. Meanwhile, the coming sessions might see a decisive 180 from the resistance confluence around the BB’s basis line, hindering the recently-accumulated buying momentum. While publishing this blog, SHIB traded at $0.01133.
Shiba Inu Daily Timeframe
Shiba Inu sellers dragged the canine-themed token to the sideways track at $0.01217 – $0.0134 after triggering a massive bullish break during mid-August sessions. Moreover, the selling momentum escalated on the baseline foothold after SHIB oscillated at this range for almost a month.
The resultant dip formed a downward channel that dragged Shiba Inu beneath its 20-50 Exponential Moving Average along the basis line, painting a bearish outlook. Nevertheless, the latest downward channel breakout tested the 50-Exponential Moving Average and the resistance at $0.01217.
Also read:Moreover, a bearish hammer candle confirmed the selling motives to engulf the buying momentum at $0.0115 – $0.012. Sellers might look to keep their bias in the upcoming sessions as the short-term Exponential Moving Average remain northbound.
A dip beneath the closest resistance might trigger a retracement, sending Shiba Inu towards $0.0104 – $0.0108. Any upside past the $0.01217 mark would invalidate the press time downsides. Such circumstances would have buyers looking to test the BB’s upper band.
Reasoning
Bears swiftly hindered the bullish momentum and dragged the RSI into bearish territory. Sustained moves beneath the midline would support the selling tendencies in the upcoming sessions. Moreover, the A/D’s (Accumulation/Distribution) and CMF’s (Chaikin Money Flows) lower highs in the past days triggered bearish divergences with SHIB’s price. These tendencies backed the broad bearish picture.
Final Thought
Considering the bearish hammer candle from 20-50EMA and the resistances basis line, Shiba Inu might witness a short-term setback before upsides. Meanwhile, overcoming $0.01217 might ensure bearish invalidations. Either way, targets would stay as mentioned. Also, investors should watch Bitcoin to identify possible bullish invalidations.
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