Key Takeaways
Shiba Inu presented a tricky case for traders with its lack of a decisive price trend. However, its range-bound price action meant that swing traders would find buying and selling opportunities at key support and resistance levels.
Shiba Inu [SHIB] was trading within a range over the past six months. In recent weeks, it lacked a strong higher timeframe trend.
On the lower timeframes, it leaned bearishly at press time and was likely to drop further, even though there was some buying pressure.
CoinMarketCap data showed that the memecoin market has shed 18.8% in market capitalization over the past month.
The sector leader, Dogecoin [DOGE], was also trading within a range since March. It attempted a bullish breakout in mid-July and failed.
Shiba Inu falls below the mid-range level – what next?
Source: SHIB/USDT on TradingView
The swing points on the 1-day chart were at $0.00001765 and $0.00001028.
The CMF was snaking its way higher, but was still below +0.05. Therefore, buying pressure was present, but not yet overwhelming, in this timeframe.
Moreover, the mid-range level at $0.00001328 was retested as resistance within the past 24 hours. This meant that there was a good likelihood of a further price drop toward the range lows.
Source: SHIB/USDT on TradingView
The 4-hour chart showed some optimism. The Awesome Oscillator was below the zero line, reflecting bearish momentum, but the CMF was above +0.05. Additionally, there were short-term S/R levels at $0.00001184 and $0.00001415.
Traders can anticipate the former level to act as support upon a retest, and look to buy. A drop below $0.0000116 would be a warning that the bulls were weak, and traders can close their long positions in that scenario.
Similarly, a retest of the $0.0000105 range lows would also offer a buying opportunity.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
