Key Takeaways
Shiba Inu has been trading inside a range since February, and over the past month has formed another short-term range below $0.000014. Technical indicators showcased a bearish bias for the meme coin.
One of the most popular memecoins, Shiba Inu [SHIB], has not had a bullish trend in recent weeks.
This was in line with other leading memecoins and most of the other altcoins as the market struggled to make gains in August.
Recently, AMBCrypto observed that SHIB whales were quietly accumulating.
A trillion Shiba Inu tokens were added to the holdings of the largest whale cohort, according to Santiment data. However, its market structure leaned bearishly.
Source: SHIB/USDT on TradingView
Since February, the 12-hour chart has consistently highlighted a purple-shaded range in which Shiba Inu has been trading. This range spans from $0.00001 to $0.000016, with a mid-point at $0.000013.
Notably, in May, the price attempted a breakout above this range; however, the move was short-lived and quickly reversed, reinforcing the range-bound structure.
The RSI on the 12-hour chart was below neutral 50, at press time, showing the bulls did not have much strength.
This was evident from the price action. Over the past week, SHIB saw a rejection at the mid-range resistance and fell to the $0.000012 support zone.
Chances of a Shiba Inu recovery appear good, here’s why
Source: SHIB/USDT on TradingView
The 4-hour chart showed two key support/resistance zones nearby, highlighted in cyan. They were at $0.000012 and $0.000014, respectively, at the time of writing, forming the extremes of a smaller range.
The H4 technical indicators were also neutral. The RSI was at 48.9, and the A/D indicator lacked a decisive trend, showing buyers and sellers were evenly matched.
The price chart suggests a likely move to the $0.000011–$0.0000115 range, which could trigger a bullish reversal.
Source: CoinGlass
AMBCrypto examined the liquidation heatmap to confirm the idea. Liquidity drives price movements, and the magnetic zone at $0.0000118 was primed for a breakout.
This reinforced the idea that a sweep of the $0.000011 liquidity would offer a good buying opportunity.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
