In spot trading, support and resistance levels are important technical analysis tools for identifying potential entry and exit points.
Support Level: The price at which a currency is expected to stop falling, where there is enough demand to stop the decline.
Resistance Level: The price at which a currency's rise is expected to stop, where there is enough supply to stop the rise.
For Shiba Inu (SHIB) on January 14, 2025, here are the current levels:
Current support and resistance levels:
Support: Analysis suggests that a strong support level is located at $0.00001035. This level has seen multiple bounces in 2024, making it an important floor for the price.
Resistance: The first level of resistance is at $0.00003239, which was a hurdle in December 2024. The second level is at $0.00004563, which is an important psychological barrier that represents the peak of the price action in early 2024.
Illustrative example:
If the current price of SHIB is $0.00002132, traders will be watching the resistance level at $0.00003239. If the price breaks this level with high volume, it could be considered a signal to enter a buy trade, targeting the next level at $0.00004563. On the other hand, if the price drops towards $0.00001035, it could be considered a buying opportunity at the support, with a stop loss placed below this level to reduce the risk.
Note: It is always advisable to check the latest analysis and ensure that the information is updated, as support and resistance levels change with market movements.