- Shiba Inu was under pressure from a technical rejection at $0.00000800.
- Since then, SHIB is dipping lower and making new lows.
- The reversal today looks promising, but technically it shouts bull trap.
Shiba Inu looked set for a jump higher just two weeks ago. Instead, it has dropped 28% in value over the past nine days. The glut in cryptocurrencies is helping short sellers to push prices further down.
Keep calm, and buy SHIB
Short sellers are enjoying the tailwind across the board with the souring sentiment in cryptocurrencies. There is certainly a case for buyers to go long SHIB, but not at levels today. Although price action is up, a bull trap looks to be forming with a monthly S1 pivot as resistance after it broke to the downside yesterday when that support could not hold. The rule of thumb in technical analysis is that support becomes resistance.
Thus, do not be too hopeful that SHIB will break or stay above that S1 monthly pivot level at $0.00000800.
Another proof that sellers are in control is that the wicks of the candles are lower at the top of the candle and longer at the bottom of the candle. Add to that the respecting of the downward black trend line, and there are enough reasons for buyers to stay out for now.
The best approach for SHIB is to let short-sellers have their fun for now and wait for better entry points, as long as the negative sentiment is ruling cryptocurrencies in general.
Further downward, $0.00000600 as the first port of call for buyers to step into SHIB. Just a few cents below, $0.00000560 and $0.00000550 as a double platform where buyers can surely go long.
As the short sellers are very much dictating price action, do not step into SHIB with the formation of that bull trap just below the monthly S1 pivot level. Instead, wait for the entry lower. Entry can also be when market sentiments flare-up, and only then can SHIB break that black descending trend line to the upside.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.