Key Points
Shiba Inu lacks a clear price trend, which is tricky for traders. However, its range-bound price movements mean swing traders will find opportunities to buy and sell at key support and resistance levels.
Shiba Inu [SHIB] has been range-bound for the past six months. In recent weeks, the stock has lacked a strong trend in higher time frames.
In the lower time frames, as of the time of writing, the price tends to be bearish and may drop further, although there is some buying pressure.
According to CoinMarketCap, the memecoin market cap has decreased by 18.8% in the past month.
Industry leader Dogecoin [DOGE] has also been trading within a range since March. In mid-July, it attempted to break through a bullish trend but failed.
Shiba Inu's levels are below the average—what's next?
The volatility points on the 1-day chart are located at $0.00001765 and $0.00001028.
The CMF shows a meandering upward trend but is still below +0.05. Therefore, buying pressure exists during this period but has not yet peaked.
In addition, the median price of $0.00001328 was tested again as a resistance level in the past 24 hours. This means the price is likely to drop further towards the range low.
The 4-hour chart shows some optimism. The momentum oscillators are below the zero line, reflecting bearish momentum, but the CMF indicator is above +0.05. Additionally, short-term support/resistance levels are at $0.00001184 and $0.00001415, respectively.
Traders can expect that the previous levels will become support after being retested, and look to buy. A drop below $0.0000116 will issue a warning of insufficient bullish strength, in which case traders may close their positions.
Similarly, retesting the $0.0000105 range low will also provide buying opportunities.
