After a total gain of 441605.51% since its launch, Shiba Inu is still bullish in 2021. Read more to find out!
Shiba Inu is a meme token with a total supply of 1 quadrillion tokens. However, from the beginning, 50% of the tokens have been locked in Uniswap's liquidity pool and the remaining were gifted to Vitalik Buterin, the (co)founder of Ethereum. Buterin on his hand proceeded to burn most of the tokens that he got. He gave away the rest to charity, to help the devastating spread of COVID-19 in India.
So, even though Shiba Inu is a meme token, its team has made sure to increase the value and utility of the token in the crypto community.
Let’s check out the projected future market structure of the token to understand its value.
Technical Analysis of SHIB/USDT in a 3-Day Chart
If you want to analyze whether Shiba Inu is bullish or bearish, it is good to start with a high time frame. Here you see the 3-day chart of SHIB in USDT’s pair, on Binance.
Clearly, the token is trapped inside a range.
Binance listed Shiba Inu on May 10 during the mega hype-spike. As fast as Shiba Inu went up, it came down and formed the range after.
In this range, the lows have been swept and the price went up afterward. Especially on September 16, when it got listed on Coinbase. However, the momentum didn’t pick up after.
If you look at it with a simple view, there are two cases for SHIB. The bullish one, where it breaks above the range, and the vise versa Bearish one.
SHIB/USDT in the Daily Time Frame
On the daily timeframe, the range gets even clearer. As you can see, on September 9, Shiba Inu (SHIB) had a decent bounce, after taking all the lows, with a breakout on the declining volume as well. That’s a good sign for the bulls. However, after a few days, the Coinbase pump shot the price high, but it didn’t close above the range. Strong selling volume came in at that point too.
So, Shib is still trapped inside the range.
SHIB/USDT in 4H Time Frame
On the 4h time frame, you get a better glimpse of the Coinbase pump. Massive buying volume came in and maintained its position for several hours. The price took the previous high around the range and came back down again. Over the weekend, the market saw a decent bounce, but the price got rejected from the .382 Fibonacci level.
Right now, the price is at a very important point for the bulls. It is right at the Golden Pocket Fibonacci level. This is the 0.618 and the 0.65 level (the orange horizontal lines). Also, the price is back at 200 EMA, a place that must be defended by the bulls, or Shiba Inu’s price might head towards the untapped lows.
Shiba Inu / Wrapped Ether in 12H Time Frame
In this part, we will Shiba Inu’s price against Wrapped Ether. These valuations are better for the bulls at this point.
Price was capped inside a massive falling wedge. It broke out on the day of the Coinbase listing, retested the wedge, and now has to reclaim the 200 ema as a next step for better valuations.
Shiba Inu/Wrapped Ether in 4H Time Frame
The breakout is better visual at the 4H time frame. First, price deviated / trapped below the wedge. Then the Coinbase pump came, price retested the wedge and the 200 ema and so far it held. However, a lower high seems to be printed here, so bulls better step in to carry it higher.
Summarizing Everything for the People in a Rush
Shiba Inu saw a massive pump in the month of May but also retraced in the weeks after. Ever since then, the price is trapped inside a range. The Coinbase pump was short lived, and the price came back down again.
Valued against Wrapped Ether, the chart is slightly more bullish. However, bulls still need to reclaim levels to keep the vibe alive.
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