Shiba Inu Tests Critical Support as SEC Filing Sparks Fresh Interest

Market Pulse

• SHIB prevails and returns from the low of the month near $0.0000085, being traded at the amount of $0.0000099 now
• The acknowledgment of SEC ETF filings hits at the very moment when the product pushes price through the make-or-break support
• The technical layout is still in a weak position with ADX displaying a trend capacity of less than 31

RSI Momentum Shifts

The RSI index is situated at 39.1 on the daily timeframe which is nearly in the oversold range and is above the as low as 33.5 on the monthly chart. This setting indicates that selling players have already spent mostly what they can do for the time being, although the bulls have not yet taken the lead. Like a twist of fate, the same RSI behaviors were also noted in previous cycles before the sharp ascents, especially in the context of good news.

With the current RSI being balanced yet weak for swing traders, it opens up a strategically favorable eclectic risk and reward that we should consider. The week RSI regulations at 39.2 concede the multi-timeframe synchronization, it shows that the trend is still going down, selling pressure, however, is starting to show early signs of slowing. Prior to the time when the momentum indicators are seen with clarity and the signals to buy are obvious, the wise money usually trades in these transitional periods.

Trend Strength Analysis

The ADX reading at 30.3 signals a return from a trending state to the range-bound back, which means we’re in a transitional phase. Apparent, the directional movement that led to SHIB’s recent downturn is appearing to get weaker, and this usually comes right before either the price stays the same or it goes in the opposite direction risky. The market seems to be taking a breather after the severe sell-off of December which led to this price action.

As the trend reverses and the market becomes more vulnerable, day traders must adapt their strategies. The current situation of fading trend strength shows that the market will be more reactive to news rather than having a smooth motion in one direction. What the SEC planned to do was to file a report that would stand as suffering. File at such time as is possible, an SEC report which is potentially the catalyst for a phase shift from distribution to accumulation. No denying, for ADX to keep up a little of trend behavior, it needs to stay above 25; if it slips down below that, it will confirm the extremely long period of sideways price movement.

Moving Average Structure

EMA ribbons act as a price action storyteller with clarity. Being the major moving averages – 10-day ($0.00001018), 20-day ($0.00001044), and particularly, the 50-day EMA at $0.00001122, SHIB now is hanging just above every one of those. All of these points were responsible for turning around the recovery effort made against the previous downturn, thus, it is a compiled resistance zone on top of this.

The 200-day EMA is sitting extremely distant at $0.00001290, meaning a significant challenge exists ahead of any longer-term sustainable bullish reversal. The first obstacle that needs to be overcome is the 50-day EMA at $0.00001122, which stood as a gatekeeper of sorts, fending off advances in December before the slipdown gained pace. The only sign of any significant change in the trend will be the bulls taking this key point back and staying above it.

Critical Price Levels

The close-by resistance area stretches from $0.00001061 to $0.00001122, which is the point of convergence of the monthly pivot and the 50-day EMA. This region was the point where a presumption on three occasions in the last month was made, thus making it a major focus for guiding the market in the near term. In that regard, the space to $0.00001272 is where the air is particularly favorable and the covering of shorts is likely to hasten the move to the upside.

The resistance or support currently appears to be very delicate, with the monthly low of $0.0000085 being the final defense barrier. The psychological milestone of $0.0000090 serves as a temporary guide to support, while the volume profile indicates there will be little buying interest until the extreme lows. The market terrain reflects perpetual danger as long as the level of resistance at $0.00001122 is not conquered, resulting in the price being confined below it.

In addition, the weekly pivot points show a very negative trend, with R1 resistance being very high at the level of $0.00001605, while S1 support is only at the level of $0.00000634. This asymmetric risk model which indicates that traders are being mostly bearish also depicts the pressure that was in the market beforehand, which suggests that traders keep a defensive position although the SEC development has taken place.

Trading Scenarios

The bulls have to create a daily close over the $0.00001122 level to change the immediate bearish scenario to neutral, with the SEC ETF narrative being the possible extra energy to achieve such movement. A continuous cut off would set the 200-day EMA at $0.00001290 as the next target, where profit-taking from the longs who are trapped could put a ceiling on the progress. The volume should go above the average to prove if it was a genuine accumulation or just another small rebound.

The bearish scenario is activated if SHIB cannot maintain $0.0000090 under any circumstances related to SEC news being faded, thus, leaving a direct track to revisiting monthly lows at $0.0000085. A volume-backed break beneath this crucial support would affirm the warnings about bearish pressure, resulting in a likely speed-up of the drop towards the yearly pivot at $0.0000063. A movement similar to that would confine the recent dip buyers and could result in panic selling.

Due to the technical indicators being oversold and the potential of receiving major news that can turn the game around, the near-term most likely scenario is that SHIB will remain in a range of consolidation from $0.0000090-$0.0000112 while the market processes the implications of the SEC. This sideways movement would enable the moving averages to stabilize and the RSI to reset before the next directional move occurs.