A technical rejection at $0.00000800 put Shiba Inu under strain.
SHIB has been sinking lower and making new lows since then.
Although today’s turnaround appears optimistic, it is technically a bull trap.
Just two weeks ago, the Shiba Inu appeared to be on the verge of a significant increase. Instead, it has lost 28% of its value in the last nine days. The cryptocurrency glut is assisting short sellers in driving prices even lower.
With the deteriorating mood in cryptocurrencies, short sellers are benefiting from a tailwind across the board. There is a case to be made for buyers to go long SHIB, but not at these prices. Despite the fact that price is rising, a bull trap appears to be emerging with the monthly S1 pivot acting as resistance after it broke to the downside yesterday when that support failed to hold. In technical analysis, the rule of thumb is that support turns into resistance.
As a result, don’t hold your breath for SHIB to break or hold above the S1 monthly pivot level of $0.00000800.
The fact that the wicks of the candles are shorter at the top and longer at the bottom is another sign that the vendors are in charge. Add in the fact that the downward black trend line is being respected, and there are plenty of reasons for buyers to stay away for the time being.
As long as negative sentiment rules cryptocurrencies in general, the best approach for SHIB is to let short-sellers have their fun for now and wait for better entry positions.
Further down, $0.00000600 is the first point of entry into SHIB for purchasers. Just a few cents below, $0.00000560 and $0.00000550 provide a double platform where buyers can go long with certainty.
Daily chart of SHIB/USD
Do not enter SHIB with the creation of the bull trap right below the monthly S1 pivot level, as short sellers are driving price action. Instead, wait for a lower entry. Entry can also occur when market attitudes ebb, and only then will SHIB be able to break above the black descending trend line to the upside./n
