Shiba's potential



10/1/20220 min read

SHIBA had a range trend during the last week. But the momentum was bullish, and we saw a move towards the short-term bearish channel ceiling resistance. Resistance in the $0.000011 range has prevented the price from growing further. Also, if the resistance of the range indicated on the chart is broken, and a strong candle closes above this range in the 4-hour timeframe with high trading volume, we can expect the price targets of $0.000012 and $0.000013 by buyers.

We can draw an upward trend line in the 4-hour timeframe inside the channel. If the trend line breaks from the bottom and the 4-hour candle stabilizes, the price will return to the previous support at the bottom of the channel will increase. Therefore, the current compression range this week is important for continuing the Shiba trend. The next important point is that Shiba's potential for positive divergence formation will be high if it hits the previous bottom support. So we can expect a price drop with more probability.