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- If the ADX rises above 25, SHIB might jump higher.
- A decline in buying pressure could force SHIB back to $0.0000090.
- SHIB’s price could hit $0.000010 if bulls breach the $0.00000967 resistance.
Shiba Inu’s (SHIB) sideways movement over the last few weeks has been disrupted by a 2.11% increase in the last 24 hours. Previously, SHIB corrected for some time, leading the price to drop to $0.0000088.
But at press time, the token was trading at $0.00000938. The bounce could be linked to the broader market recovery, which saw Bitcoin (BTC) rise above $46,000. However, BTC’s and SHIB’s correlation has decoupled over the last year. Therefore, using Bitcoin as a benchmark for trading SHIB might not be the best option.
SHIB/USD 4-Hour Chart
From the SHIB/USD 4-hour chart, volatility grew based on indications from the Bollinger Bands (BB). Furthermore, bulls displayed a resolve to challenge the $0.00000967 resistance.
If buying pressure continues to build up and bulls defend the $0.00000915 support, then SHIB might breach the resistance. Should this happen, SHIB might delete one zero, which takes the price back to $0.000010.
Indications from the Moving Average Convergence Divergence (MACD) supported a bullish pattern. At press time, the MACD was rising, and the histogram bars were green. The 12 EMA (blue) and 26 EMA (orange) followed in an upward direction, suggesting a strong bullish confluence.
SHIB/USD 4-Hour Chart (Source: TradingView)
Buyers can get a promising sign if bulls continue to overpower bears. In a highly bearish case, SHIB might attempt to test $0.00001038. Conversely, a decline in momentum could force a reversal that sees SHIB drawback to $0.0000090.
On the daily chart, SHIB painted a picture like it was ready to level all the losses incurred since January 21. One of the indicators that projected this movement was the Directional Movement Index (DMI).
As of this writing, the +DMI (green) was 21.67. On the other hand, the -DMI (red) was 19.95. It was noteworthy to mention that the +DMI trended upwards while the –DMI faced south.
This position suggests that sellers were losing dominance and buyers were taking control of SHIB’s direction. Yet, the Average Directional Index (ADX) was 20.92. To validate SHIB’s bullish bias, the ADX (yellow) has to rise above 25.
SHIB/USD Daily Chart (Source: TradingView)
If this happens, SHIB might rise to $0.00000969, which could lay the groundwork for another rise to $0.000010. However, if bulls do not capitalize on the movement, SHIB’s price could drop. From a bearish perspective, SHIB might fall to $0.00000839 where the 0.618 Fib level was positioned.
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