SHIB May Be Gearing up for Something Big as Is Consolidates

SHIBUSDT has consolidated between $0.00002794 and $0.00003102 over the past 24 hours. Traders and investors will want to see in which direction the memecoin breaks out of this range to try and gauge the crypto’s next move.

A 4-hour candle close above $0.00003102 could lead to the crypto entering into a bullish move. As such, the Shiba Inu price may attempt a challenge at the $0.00003607 resistance level in the following 24 hours. Thereafter, continued buy pressure could boost SHIB to as high as $0.00004382 in the short term.Conversely, falling below $0.00002794 may put the Shiba inu price at risk of correcting to the subsequent support level at $0.00001910 in the following 24-48 hours.

Technicals Still Flagging Bearish
Technical indicators on SHIB’s 4-hour chart suggest the Shiba Inu price may drop in the next 24 hours. Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) are flagging bearish.

The MACD is positioned below the MACD Signal line, which is generally seen as a sign that a crypto is in a negative cycle. Similarly, the RSI is positioned below its Simple Moving Average (SMA) line. This could indicate that sellers are currently stronger than buyers on the short-term timeframe.

Traders may want to keep an eye on the MACD indicator, as the MACD Histogram is becoming more positive. This could be the early sign of a bullish trend reversal. In addition to this, the RSI shows that SHIB is currently oversold, which may be seen as a buy signal in the coming 24 hours.

For Shiba Inu (SHIB), based on the consolidation range and the technical indicators you've described, we can outline trading strategies for both bullish and bearish scenarios. Here, the focus will also be on identifying clear entry and exit points, along with managing risks effectively.
Potential Trade Strategies for the Shiba Inu Price
Long Position Strategy

Entry Conditions:
- Primary Entry Signal: A 4-hour candle closing above the $0.00003102 level, suggesting a breakout to the upside. This could be a signal for the start of a bullish move.
- Secondary Entry Signal: Look for bullish signals from the MACD, such as the MACD line crossing above the signal line, or the MACD Histogram showing increasing positive momentum. Additionally, consider the RSI moving out of the oversold territory as another entry confirmation.

Exit Conditions:
- Take Profit: Set the first take profit target at the next resistance level of $0.00003607. If the momentum continues, consider extending the take profit to $0.00004382, monitoring closely for any signs of reversal.
- Stop Loss: To manage the risk, set a stop loss just below the consolidation range, around $0.00002790, to minimize potential losses if the market moves against your position.

Risk Management:
- Pay attention to the volume supporting the breakout, as increasing volume can validate the move.
- Adjust your position size to ensure that the maximum loss does not exceed a small percentage of your trading capital.

Short Position Strategy

Entry Conditions:
- Primary Entry Signal: A 4-hour candle closing below the $0.00002794 support level, indicating a potential bearish breakout from the consolidation range.
- Secondary Entry Signal: The MACD remaining below the signal line combined with the RSI remaining below its SMA line can serve as confirmation that the bearish momentum is likely to continue.

Exit Conditions:
- Take Profit: The initial take profit target can be set at the subsequent support level of $0.00001910, as a fall below the consolidation range could lead to significant downside.
- Stop Loss: Place a stop loss slightly above the consolidation range, around $0.00002800, to protect against the possibility of a false breakout or sudden reversal.

Risk Management:
- Monitor the MACD Histogram for signs of diminishing negative momentum, which could indicate a weakening of the bearish trend.
- Consider the overall market sentiment and any external factors that could influence the price of SHIB, adjusting your strategy accordingly.

General Tips:
- Always review the risk-reward ratio to ensure that potential rewards justify the risks.
- Be prepared to exit positions if the market shows signs of a reversal that contradicts your initial analysis.
- Keep an eye on broader market trends and news that could impact the cryptocurrency market, as memecoins like SHIB can be particularly sensitive to social media trends and broader market sentiment.
- Consider using trailing stops in profitable positions to capture gains while protecting against sudden market reversals.

Given the bearish indicators but also the potential for a reversal indicated by the MACD Histogram and the oversold RSI, it's crucial to wait for clear signals before entering trades and to manage risks carefully.