Is the Bearish Trend Over for SHIBA?
2024-09-19



 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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