What’s next for Shiba Inu, as it steps on the brakes for now

What’s next for Shiba Inu, as it steps on the brakes for now

Shiba Inu’s phenomenal bull run during October propelled it into the upper echelons of mid-large cap cryptos. For a brief moment, SHIB overtook the likes of Polkadot and Dogecoin on the crypto ladder, before slipping down to the 10th position post a correction.

The digital asset finally hit pause after snapping an ATH at the 238.2% Fibonacci level, and was now expected to stabilize between the 161.8% and 200% Fibonacci levels before embarking on its next upswing. At the time of writing, SHIB traded at $0.00006870 with a market cap of $37.67 Billion.

Shiba Inu 4-hour Chart

Shiba Inu continued its massive bull run on the back of a bullish pennant breakout two weeks ago. The upswing accounted for another 200% surge, which saw SHIB tag its 238.2% Fibonacci level, after which profit-taking was observed. Should SHIB now minimize its losses in the range above the 20-SMA (red) and 161.8% Fibonacci level, further upside awaited at 261.8% and 300% Fibonacci levels.

However, these targets would be realized after a brief period of consolidation, considering the 24-hour trading volumes took a massive hit of 40% as per CoinMarketCap.

In case SHIB weakens below its $0.00006169, some near-term uncertainties could create panic among investors. Retracements can be felt deeper towards the 138.2% and 100% Fibonacci levels should a majority of investors lock in their gains.

Reasoning

For the moment, SHIB needed to combat bearish cues before mustering strength for the next leg forward. For instance, the MACD flashed a sell signal after registering a bearish crossover, while the Directional Movement Index’s -DI line eyed a similar crossover above the +DI line. The RSI was still cooling off from overbought levels and would likely extend its downfall towards the half-line before reversing.

Conclusion

Bulls needed to ensure that the aforementioned sell signals prevent SHIB from closing below the 161.8% Fibonacci level. If so, bulls can target another rally once selling pressure dissipates from the market. The 261.8% and 300% Fibonacci levels would be SHIB’s next targets should its correctional phase come to a conclusion. However, if SHIB closes below $0.00006169, additional drawdown can be expected.

Source

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