- The SHIB coin price is trading near the supply zone on a daily time frame.
- The SHIB coin price is forming a rounding bottom pattern on a daily time frame.
- The SHIB coin price has been on an uptrend following the bullish momentum in the overall cryptocurrency market.
On a Daily time frame, the SHIB coin price is trading in the supply zone after strongly bouncing off the demand zone. As it formed a bullish candlestick pattern, the coin price bounced off the demand zone with strong bullish pressure. Despite the bullish run on a daily time frame, the SHIB coin price is forming a lower low and lower high price formation. On a smaller time scale, the coin price is forming higher highs and higher lows. Despite the global market’s bearishness, the coin price has managed to bounce off the demand zone. For the past 72 hours, the SHIB coin price has been rising. The SHIB coin price is currently trading below the 50 and 100 MAs.As the coin price rises, it will come into contact with strong bearish pressure from the supply zone. The coin’s price fell below the 50 and 100 MAs due to bearish sentiment. The coin price is currently trading in the upper Bollinger band of the indicator. Volatility has increased as a result of increased volume, so investors should remain cautious and wait for a clear trend.
The SHIB coin price is forming a rounding bottom pattern on a daily time frame
Average Directional Movement Index: ADX curve has been in a downtrend on a weekly time frame as the coin price entered a consolidation phase. Recently, the ADX curve slipped below the mark of 30. As of now, the ADX curve trades at 34.42 as it bounces off the demand zone. Once the coin price crosses the important short-term supply zone, the ADX curve can also be seen moving up, supporting the trend. The ADX curve has turned sideways indicating a halt in the price movement and a possible change in the price structure in a lower time frame.
Relative Strength Index: RSI curve is trading at the level of 60.72. As of now, the RSI curve has crossed the halfway mark of 50. Once the SHIB coin price crosses the supply zone, the RSI curve can be seen rising higher. The RSI curve has also crossed the 20 EMA. Despite the consolidation phase, the RSI curve is rising indicating bullish momentum to foray. Investors should remain cautious as the RSI curve is nearing the overbought zone.
Supertrend: The SHIB coin price is forming a rounding pattern as it is for a lower high and lower low price structure on a weekly time frame. The recent bounce off the demand zone in the price of SHIB coin price did not lead to the breakout of the super trend sell line which is acting as a strong supply area. If the coin price breaks the supply zone with a strong bullish pressure it can be seen breaking the supertrend sell line.
CONCLUSION: The SHIB coin price has managed to sustain above the demand zone. As per price action, the coin price shows a U-shaped recovery. The technical parameters are also bullish indicating bullish momentum to foray into the upcoming trading days. Investors should remain cautious and wait for a proper breakout and then act accordingly.
SUPPORT: $0.00001050 and $0.00001080
RESISTANCE: $0.00001200 and $0.00001170
