SHIB/USDT (Shiba Inu) - 4-hour timeframe - RSI

1. Price Action:
Current Price: SHIB is trading around 0.00001693 USDT. It is currently moving along an upward trendline after a sharp pullback from the recent local high near 0.00001900.
Uptrend Support: There are two upward trendlines:
  • One is more short-term, providing immediate support close to the current price.
  • The other trendline is more long-term, extending from the lows around 0.00001200 from July, offering stronger long-term support.

The price has bounced off the more recent trendline multiple times, indicating that buyers are stepping in to defend these levels.

2. Support and Resistance Levels:
Resistance:
The first resistance is near 0.00001750–0.00001800, where the price has been rejected multiple times in the recent past.
A stronger resistance lies around 0.00001900, where SHIB faced its most recent peak before pulling back.

Support:
The short-term support trendline is around 0.00001670, which SHIB has respected during recent corrections.
The longer-term support level is around 0.00001400, where there is also a horizontal support zone.

3. RSI (Relative Strength Index):
Current RSI: The RSI is at 46.69, slightly below neutral. This indicates that SHIB is not in overbought or oversold territory, meaning the price could move in either direction.
RSI Trend: The RSI has been declining from overbought conditions (above 70) after the recent price rally. If the RSI continues to drop below 40, it may indicate increasing selling momentum.
4. Potential Scenarios:
Bullish Scenario:
  • If SHIB holds above the short-term trendline (around 0.00001670) and the RSI bounces higher, there is potential for the price to test the resistance at 0.00001750. A break above this could push SHIB toward 0.00001900, where it last faced rejection.
  • Volume Confirmation: Increased buying volume would confirm the potential for an upward move, signaling that buyers are stepping in.

Bearish Scenario:
  • If SHIB breaks below the short-term trendline, it could retest the stronger support around 0.00001400, where the longer-term trendline and horizontal support align.
  • RSI Below 40: A continued decline in RSI below 40 would indicate increasing selling pressure, confirming a potential bearish scenario.

Neutral Scenario:
SHIB could continue consolidating between the 0.00001700 support level and the 0.00001800 resistance level, trading in a range as market participants wait for a clearer direction. This scenario is supported by the neutral RSI and the general consolidation pattern.
5. Key Trading Signals:
The chart also shows RSI-based entry (RsiLE) and exit (RsiSE) signals. Currently, an RsiLE (buy) signal was triggered recently, suggesting potential upward momentum based on the RSI levels. However, since the RSI is still in neutral territory, this signal might not be as strong without additional confirmation from the price action.
6. Conclusion and Strategy:
Current Bias: Neutral to Slightly Bullish
SHIB is holding above the short-term trendline, suggesting that buyers are defending this level. The RSI is neutral, indicating that the market could move in either direction.
Key Levels to Watch:
  • Resistance: 0.00001750–0.00001800, followed by 0.00001900.
  • Support: 0.00001670 (short-term trendline), 0.00001400 (long-term trendline and horizontal
support).
Strategy:
  • Consider a long position if SHIB holds above 0.00001670 and starts to show signs of strength, with a potential target around 0.00001750 and 0.00001900. Use a stop-loss just below 0.00001650 to minimize risk in case of a breakdown.
  • For a short position, consider entry if SHIB breaks below 0.00001670, with targets around 0.00001400, and set a stop-loss above 0.00001700 to protect against a false breakdown.
  • In summary, SHIB is at a critical juncture. A breakout above resistance or a breakdown below support will determine the next major move, with the trendlines providing clear guideposts for traders.
Chart PatternsTechnical IndicatorsTrend Analysis

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