Where Shiba Inu could head next after impressive five-day feat

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

After ascending toward its three-month high on 14 august, Shiba Inu [SHIB] bears inflicted a near-term decline. As a result, the meme-coin saw a pulldown below its $0.0133-$0.0137 resistance range. (For brevity, SHIB prices are multiplied by 1000 from here on).

On the other hand, the $0.01172 baseline put the meme coin back on a bullish path as SHIB registered double-digit gains above its four-hour EMA ribbons and the 200 EMA (green). As the price action approached its immediate resistance range, SHIB could observe a sluggish phase.

If the buyers defend the $0.0129-support, SHIB could see a rebound. At press time, SHIB traded at $0.01306.

SHIB 4-hour Chart

Over the last week, SHIB’s ascent chalked out northbound trendline support (white, dashed). This growth led SHIB to retest the $0.0133 resistance as it seemed to slow down.

In the meantime, the EMA ribbons undertook a full bullish flip after nearly three weeks. Also, the 20/50 EMAs close above the 200 EMA has reaffirmed the bullish vigor in the SHIB market. 

A decline toward the $0.0129-level could likely propel a rebound. In this case, the coin would retest the $0.0133 resistance before committing itself to a trend.

An immediate or eventual close above the $0.0129-mark can expose the coin toward an upside. In such circumstances, SHIB could witness a recovery toward its EMAs in the $0.0137-$0.014 range.

An inability to find a close above the $0.0133 mark support would encourage a slow-moving phase compression phase in the coming sessions.

Rationale

Source: TradingView, SHIB/USD

The Relative Strength Index (RSI) was gradually declining after reversing from the overbought region. But the index still maintained its position above the midline to depict a slight bullish edge.

Also, the DMI lines resonated with a slight bullish edge in the market. To top this off, the ADX revealed a strong directional trend. 

However, the Chaikin Money Flow (CMF) was yet to undergo some improvements. Its decline below the zero mark has exhibited a slight preference for the sellers.

Conclusion

Given the influxion of the $0.0129-baseline and the 20 EMA, SHIB buyers would aim for a rebound from its immediate support. But they must topple the $0.0133 resistance to confirm the bullish bias. The targets would remain the same as discussed.

Also, the alt shares a 95% 30-day correlation with Bitcoin. Thus, keeping an eye on Bitcoin’s movement with the overall market sentiment could be supplemental to identify any bullish invalidations.