The SHIBUSD pair experienced a decline starting from November 11, which has now extended to the lower line of the bullish flag. This movement was in line with the RSI indicator, which was hovering in the overbought area at that time. In today’s trading session, SHIBUSD faced significant selling pressure, leading the pair to close below the flag.
Currently, the Shiba price is testing the broken flag, which now acts as resistance. The market has turned bearish, a sentiment supported by the RSI indicator lingering below the 50 level. If SHIBUSD maintains its position below the pivot, the next target for sellers could be the S2 support level.
Conversely, this bearish scenario would be invalidated if the SHIBUSD price closes and stabilizes above the pivot.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.