For the past four weeks, Bitcoin’s (BTC) price has been relatively unchanged on the charts. The top cryptocurrency traded between £18.2.4k and £16.4.6k during this period. While trading opportunities were present in a 10% range, the trend remained bearish on a longer-term view. The same was reflected on Shiba Inu (SHIB).
SHIB’s price was not greatly influenced by the anticipation for Shiba Eternity or its listing on BitMEX. Due to the lack of a discernible trend, trading volume has been low in recent weeks.
From November 2021, SHIB’s price charts indicated a bearish outlook. Interestingly, the price broke above the £0.000012 resistance level in August, only to be driven back down a week later.
The Relative Strength Index (RSI) has fallen below neutral 50 since mid-August to emphasise the bearish momentum.
In order to indicate a downtrend, the price has also made a number of lower highs as well as lower lows. The On-Balance Volume (OBV) remained flat throughout this period.
In recent weeks, the £0.000011 was a crucial level. Having served as a short-term support in August, it is now a level of resistance. A bearish order block has formed in this area.
Therefore, returning to this order block may present a chance to short, with the support levels at £0.0000086 and £0.0000067 as targets. A one-day session close above £0.000011 would be required to invalidate this view.
SHIB’s price downtrend from mid-August was evident on the charts. Along with the price, the supply on exchanges was also declining.
This caught people off guard since it suggested that whales might accumulate. This would result in the asset being moved from exchanges, something that seemed to be happening.
SHIB might be nearing its long-term lows, with a rebound to follow in the next few months. However, traders can try to trade with the downtrend for the time being.