FxNews – The SHIBUSD pair recently achieved a notable breakout, surpassing the highest price in November during the previous day’s trading session. In this surge, the SHIBUSD pair reached the 78.6% Fibonacci retracement level, as seen on the daily chart. Currently, Shiba is experiencing a pullback, which was hinted at by the RSI (Relative Strength Index) indicator. This indicator hovered in the overbought zone, suggesting a possible reversal.
Shiba Technical Analysis – Possible Consolidation
FxNews – Here, the breakout above the September high becomes more evident. The RSI indicator on this timeframe mirrors the daily chart, continuing to signal an overbought condition.
Based on these observations, we expect the SHIBA price to face downward pressure, potentially testing the support level around the 96 area. This particular support level could present a favorable opportunity for new buyers to enter the market, betting on continuing the bullish trend.
However, there’s an alternate scenario to consider. If Shiba closes and stabilizes its price below the 96 support level, the SHIBUSD pair could face further downward pressure. This scenario might lead the pair towards the median line of the previously broken bearish channel, with a potential eye on the 885 pivot as the next critical juncture.
This SHIBA technical analysis suggests a volatile market with key levels to watch. Investors and traders should monitor these pivotal points closely to understand better the potential direction of the SHIBUSD pair in the near term.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.
