Analyst Says Shiba Inu Now Retesting the Ichimoku Cloud After Rejection

Shiba Inu has corrected considerably in the past 24 hours, with an analyst suggesting the meme coin is now retesting the Ichimoku Cloud.

In the latest Shiba Inu news, the asset has faced massive downsides amidst a broader market capitulation. For context, the dog-themed meme coin is down 13% in the past 24 hours following Bitcoin’s brief drop below $95,000 on Monday.

Shiba Inu traders saw substantial liquidations, as $12.6 million worth of positions were affected. However, analyst Cantonese Cat has suggested that Shiba Inu’s capsize results from a rejection from a strong resistance.

Shiba Inu Rejected from Fibonacci Extension

In a Monday analysis, Cantonese Cat stated that Shiba Inu is at a major crossroads following yesterday’s dump. The analyst tied the market capitulation to a rejection from the 0.618 Fibonacci extension around $0.000031247.

Notably, Shiba Inu faced strong resistance on Sunday when it surged to the $0.00003343 price zone. The meme coin’s bullish outburst could not surmount the supply zone, with the asset correcting over 16% from the level.

With the rejection, Cantonese Cat shares a SHIB weekly chart suggesting that Shiba Inu is now retesting the Ichimoku Cloud. Notably, the Ichimoku Cloud shows market trends and major support and resistance levels.

Shiba Inu Ichimoku Cloud

For context, the analyst had earlier predicted a break above the Ichimoku Cloud on the weekly timeframe. The Crypto Basic reported last month that Cantonese Cat speculated a break above the indicator, suggesting a bullish momentum.

Shiba Inu did follow his assertion, but the 0.618 Fibonacci extension impeded further upsides. Market observers are now monitoring Shiba Inu’s price action at the weekly Ichimoku Cloud.

What Next for Shiba Inu?

Meanwhile, technical analysis shows mixed indications for Shiba Inu. For instance, the relative strength index (RSI) on the SHIB 4-hour timeframe stands at 30.76, close to the oversold territory. This suggests that Shiba Inu could rebound from the dips and target higher prices.

However, the MACD indicator remains bearish. With the MACD line at 0.00000083 and the signal line at 0.00000017, the huge gap between them suggests downward pressure still presides.

Shiba Analysis

At press time, Shiba Inu changes hands at $0.00002695 with a market cap of $15.8 billion.

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