September 19, 2024 at 12:22AM Is the Bearish Trend Over for SHIBA?

Is the Bearish Trend Over for SHIBA?

SHIBUSDT SPOT BYBIT:SHIBUSDT

3Commas

Technical Analysis:

1. Waiting for Reversal:

• The price of SHIB/USDT has fallen by approximately 80% from its previous high, indicating a significant downward trend over the long term.
  
• The price is at a previous resistance level of $0.000014, which has now turned into support due to the change in structure.
  
• The key idea here is to confirm the break of the most recent lower high in the downtrend, not just the level of $0.000016. This would indicate a potential reversal to a bullish trend, showing that the downtrend is losing momentum.
  

2. Bullish Divergences and Momentum:

• Oscillators are showing regular bullish divergences at oversold levels. This suggests that while the price has been declining, there is underlying bullish strength building up.
  
• Momentum is increasing, indicating a decrease in bearish strength. This momentum change could be the precursor to a possible reversal, suggesting that the bears are losing control and the bulls may take over.
  

3. Key Levels to Watch:

• Support at $0.000008: This is the extreme entry point, a level where the price has previously bounced. If the price revisits this level, it could provide an attractive entry for a long position.
  
• Current Resistance at $0.000016: A break and hold above this level could confirm a bullish reversal, but it's crucial to watch for a break above the most recent lower high to gain further confirmation of a trend change.
  
• Fibonacci Levels: The Fibonacci retracement levels are also showing potential zones of support and resistance, aligning with the price action. A break above the 61.8% Fibonacci level would add further confirmation to the bullish outlook.
  

4. Potential Entry Points:

• Traders could consider entering at the current price if the market shows signs of reversing, especially if the price can confirm a break above the most recent lower high and the $0.000016 level.
  
• Alternatively, entering on a pullback towards the $0.000008 level could provide a better risk/reward ratio. This level has historically acted as strong support.
  

5. Multi-Timeframe Analysis:

• The multi-timeframe trend and ribbon analysis show bearish signals on the higher timeframes, but the lower timeframes (1-hour and 4-hour) are starting to show bullish signs. This divergence indicates that while the longer-term trend is bearish, a short-term reversal might be in play.
  
• Monitoring these lower timeframes for a confirmed trend reversal is key to timing the entry accurately.
  

What are your thoughts on SHIB/USDT? Do you see the same potential for a reversal, or do you think the bearish trend will continue? Share your analysis and strategies below.

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