The Shiba Inu token (SHIB) has suffered a sharp drop since reaching an all-time high in October last year.
In fact, SHIB fell among the Parallel Channels South and fell below the $0.033 region as well.
In light of the previous trend of buyers defending the range at $0.02195 and $0.02013, the SHIB bulls were aiming to retest the 20-day EMA crossover before returning to the downtrend long-term.
At the time of writing, SHIB is trading at $0.022.
During this bearish phase, SHIB missed the crucial control point from the $0.033 level and also fell below the 200-day EMA crossover, this level coincides with the 23.6% Fibonacci resistance. .
After that, the price entered a tight phase as the bulls started to push and refused to go down in price, thus the coin saw gains of over 70% in the period Feb 3-9 and broke out of the descending channel while the 23.6% Fibonacci level remained strong.
Over the course of the past month, SHIB formed a falling wedge on the daily chart, but with the 20-day moving average price crossing below the 200-day moving average price crossing, pushing the price even lower.
If history repeats itself, the bulls will be eager to keep the $0.02-$0.021 range intact.
Therefore, keeping hopes of a recovery towards the $0.024 level, and also, traders should monitor the narrowing gap between the 50-day moving average price crossover and the 200-day moving average price crossover and on case of a downtrend. crossover (death cross) there can be a lot of put trades.
The bearish RSI looked to find a close above the 43-45 resistance range.
Interestingly, while price action has continued to identify lower lows over the past three weeks, the RSI has held support 39 as is, revealing a bullish divergence.