Shiba Inu has been trading sideways for six months and lacks a clear trend, creating conditions for short-term trades at key support and resistance levels.
The sideways price volatility of Shiba Inu aligns with the swing trade strategy, while technical indicators currently signal short-term bearishness, urging investors to be cautious.
MAIN CONTENT
Shiba Inu lacks strong trends, mainly fluctuating within a narrow range over the past six months.
The memecoin market has just dropped nearly 19% in market cap within a month, led by Dogecoin.
Technical indicators suggest further price decline potential, but there are still good buying and selling points at short-term support and resistance levels.
What is Shiba Inu?
Shiba Inu is a meme-based cryptocurrency, launched as a counter to Dogecoin and quickly attracted widespread interest in the global investment community.
Shiba Inu is often seen as a symbol of the memecoin wave, providing significant profits for investors who enjoy high volatility. However, its lack of real-world application and influence of community sentiment also makes SHIB's movements unpredictable.
The emergence of Shiba Inu following Dogecoin further fuels speculative trading, posing high risks if key price areas are not understood to optimize investment strategies.
What price trend is Shiba Inu maintaining?
In the last six months, Shiba Inu has mainly traded sideways, not establishing a clear long-term bullish or bearish trend, aligning with short-term trading strategies.
Limited price volatility indicates that market sentiment has not decisively determined, with most investors choosing to observe. Only when the price breaks out of this range can a strong trend in the medium and long term be confirmed.
The price volatility of Shiba Inu is cyclical, creating more opportunities for swing traders to exploit the range rather than expecting a large trend.
– Memecoin Market Report 2024, CoinMarketCap
This caution also reflects the overall sentiment of the cryptocurrency market in the context of a recent significant drop in memecoin market cap.
What is the current state of volatility in the memecoin market?
According to CoinMarketCap data, in just one month, the entire memecoin market has dropped 18.8% in market cap, indicating a deep adjustment and more cautious sentiment among investors.
Dogecoin still holds the leading position in the memecoin segment, but this coin has also failed to break out, trading in a sideways price range since March. Despite attempts to break out in mid-July, Dogecoin quickly adjusted down again.
This demonstrates the synchronous trend between major memecoins, making the possibility of a new bullish wave difficult to form in the short term.
What are the current important support and resistance levels for Shiba Inu?
On the daily chart, the price levels of 0.00001765 USD and 0.00001028 USD are two key swing points, acting as the strongest resistance and support areas.
The central price level at 0.00001328 USD has been confirmed as resistance in the last 24 hours, warning of increasing selling pressure if the price cannot hold above this level.
"The price of Shiba Inu continuously tests the middle of the consolidation trading range, reinforcing the probability of a deeper decline to lower support levels."
– Technical analysis expert, TradingView, 2024
Overall, if the price breaks below the important support level at 0.00001160 USD, the probability of further decline to 0.00001028 USD will be very high.
What do technical indicators say about the short-term trend of Shiba Inu?
On the daily timeframe, the CMF (Chaikin Money Flow) indicator remains below +0.05, confirming that buying pressure is moderate and not strong enough to reverse the downtrend.
On the 4-hour timeframe, the Awesome Oscillator is below 0, indicating that bearish momentum still exists, but the CMF has crossed above +0.05, suggesting short-term buying pressure. This is a signal for the potential formation of short-term rebounds during the day, but it cannot confirm a complete reversal.
Conversely, when momentum indicators are not clearly aligned, investors need to set tight stop-losses and target buying and selling at specific support and resistance areas.
What are the opportunities and risks for swing traders of Shiba Inu?
With sideways price movements, swing traders can utilize support areas like 0.00001184 USD to buy when the price retests and sell when the price approaches the resistance area of 0.00001415 USD.
If the price drops below 0.00001160 USD, consider cutting losses early to limit risks. If the price tests the bottom area of 0.00001050 USD, it could also be a potential buying point for technical rebounds.
The current market leans more towards risks than opportunities if positions are not well controlled, as the short-term downtrend still prevails.
Comparing trading characteristics and trends between Shiba Inu and Dogecoin.
Criteria Shiba Inu (SHIB) Dogecoin (DOGE) Six-month trading range Clearly sideways, no breakout yet Sideways, attempted breakout in mid-July but failed Trading volume Stable, mainly below resistance Higher due to large market cap, but still no breakout Swing trade opportunity Many short-term support and resistance points easily identifiable Wider range, but the same sideways characteristics Short-term downside risk High, if support at 0.00001160 USD is lost Similarly, no signs of sustainable upward movement.
Frequently asked questions
Is Shiba Inu suitable for long-term investment at this time?
Currently, the trend is unclear, mainly suitable for short-term scalping. Long-term investments carry many risks if positions are not controlled.
Which indicators are important to monitor when trading Shiba Inu?
Pay attention to support levels at 0.00001160 USD and resistance at 0.00001415 USD along with CMF and Awesome Oscillator indicators to determine actual buying and selling pressure.
Can we expect a strong bullish wave with Shiba Inu in the next quarter?
No signs of breakout from the sideways range. Only when it significantly surpasses the main resistance zone will a sustainable bullish wave be confirmed.
How should risk be managed when swing trading SHIB?
Choose an entry point at clear support, set stop-loss tight, prioritize short-term profit-taking, and do not hold positions through sensitive price areas.
What stage is the memecoin market in according to recent reports?
The total market cap has decreased nearly 19% in the last month, reflecting significant adjustment and caution in speculative capital.
Source: https://tintucbitcoin.com/shib-giam-gia-diem-mua-quan-trong/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated with the latest news about the cryptocurrency market and not miss any important information!
