Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice
Following a breakdown from a previous triangle setup, Shiba Inu looks to claw back lost ground from yet another symmetrical triangle setup. A recovery along the RSI underpinned SHIB’s development within the triangle, although at press time, a bearish bias was still intact.
Traders should watch out for a close above key levels to get more clarity as far as breakout direction is concerned. At the time of writing, SHIB was trading at $0.00005279, up by 0.44% over the last 24 hours.
Shiba Inu 4-hour Chart
Shiba Inu formed yet another symmetrical triangle after snapping three lower highs and three higher lows over the last 10 days. Post the final round of consolidation, SHIB eyed a 33% breakout in either direction, based on the highest and lowest points within the pattern.
Bullish traders should await a close above the confluence of the 4-hour 50-SMA (yellow) and 138.2% Fibonacci Extension. This would pave the way for a breakout target of $0.00007209. A decisive leg above 11 November’s swing high of $0.00005796 would confirm a favorable outcome.
On the flip side, a breakdown can be anticipated if SHIB weakens below its 200-SMA (green). A move in the opposite direction could extend all the way to the defensive zone of $0.00003282-$0.00003180.
Reasoning
Considering the nature of its 4-hour RSI, MACD, and Awesome Oscillator, SHIB seemed to be within a bearish bias. Especially since each of the indicators traded under their half-lines and offered sell signals.
However, it’s worth noting that the RSI formed an ascending triangle and was awaiting a bullish breakout. Similarly, higher lows were also observed along the MACD and Awesome Oscillator, suggesting a revival in buying pressure.
Conclusion
If the aforementioned indicators do manage to break resistance at their mid-points, SHIB would eye an upwards breakout from its triangle. Traders can go long once SHIB establishes a leg above the 138.2% Fibonacci level and exit their trades at $0.00007209.
A stop-loss can be maintained at $0.00004550, below 10 November’s swing low.
On the flip side, a bearish outcome would be likely if SHIB slips below its 4-hour 200-SMA (green).
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