Key Takeaways
- SHIB has traded sideways, staying around $0.000013 since the start of the month
- The equal presence of bulls and bears has prevented a clear price direction.
- SHIB price is likely to keep consolidating, unless momentum changes.
Over the past few days, the Shiba Inu (SHIB) price has been trading within the same range. For instance, as of this writing, the memecoin’s value is $0.000013.
Interestingly, SHIB’s price is trading at the same level it held at the start of the month. This is a sign that indecision is gripping the market.
According to CCN’s analysis, the lack of clear direction stems from an evenly matched tug-of-war between bulls and bears.
However, with momentum building on both sides, a breakout may be imminent, and this analysis sheds light on which way the scales could tip.
SHIB Faces Stalemate
At press time, CCN evaluated SHIB’s Bulls and Bears indicator. For context, bulls are addresses that bought at least 1% of the total trading volume within a specific period.
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Bears, on the other hand, are market participants who sold a similar amount. Typically, when there are bulls than bears, the price increases.
On the other hand, a higher number of bears leads to a price decrease. But according to IntoTheBlock data, the past seven days have seen Shiba Inu have the same number of bulls and bears.
As a result, SHIB’s price has found it challenging to have a clear breakout or breakdown. By the look of things, this contest between key buyers and sellers might linger and could keep SHIB in consolidation.
From a technical point of view, we examined the SHIB/USD 4-hour chart. On the chart, the Relative Strength Index (RSI) has dropped below the neutral line.
But it is still close to the 50.00 midpoint. Since the RSI measures momentum, the current reading indicates that the sentiment around SHIB is torn between bullish and bearish.
Should this linger, SHIB’s price might keep trading between a swing low of $0.000012 and a swing high of $0.000014. However, traders might need to watch out for the key inflection point near $0.000013.
SHIB Price Analysis: No Clear Direction
On the daily chart, SHIB’s price is trading within a descending triangle with horizontal support near $0.000013. As it stands, bulls seem to be defending this support.
At the same time, the drop in the Awesome Oscillator (AO) reading indicates that bears are still lurking around. Should this trend remain the same, SHIB’s market value could keep swinging between $0.000012 and $0.000014.
However, in a highly bullish scenario, SHIB’s price might jump past the upper trendline of the triangle. In that case, the memecoin could rise to $0.000016.
But if bears tug the price back, another correction could take place. If that were to happen, the cryptocurrency might drop below $0.000010.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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