Market Overview for Shiba Inu/Yen (SHIBJPY)

• SHIBJPY traded higher over 24 hours with a close near the session high, indicating bullish momentum.
• Price formed a bullish engulfing pattern near session low, suggesting potential reversal support at 0.001753.
• Volatility expanded in the first half of the session, followed by a consolidation phase and a final rally.
• RSI and MACD showed divergence in the second half, hinting at a possible short-term correction.
• Turnover surged in early evening (ET) before tapering, aligning with price action for key support and resistance levels.

Shiba Inu/Yen (SHIBJPY) opened at 0.001753 (12:00 ET − 1), surged to a high of 0.001795, then closed at 0.001767 (12:00 ET) on 24-hour volume of 11,538,402,152 and turnover of $19,979,668. The 24-hour period showed a volatile bullish bias with multiple consolidation and breakout phases.

Structure & Formations

The SHIBJPY pair formed a bullish engulfing pattern at the early session low of 0.001753, which acted as strong support. A series of higher highs and lower lows followed, forming a bullish trendline from 0.001767 to 0.001791. The 0.001783 level appears to be a key psychological resistance turned support. A doji formed near the session high, suggesting some indecision after the rally.

Moving Averages

On the 15-minute chart, the 20-period and 50-period SMAs were in bullish alignment, supporting the uptrend. The 50-period SMA crossed above the 20-period SMA early in the session, forming a golden cross. On the daily chart, the 200-period SMA acts as a critical long-term support at 0.001765, which was tested and held. The 50-period SMA sits at 0.001773, slightly above the current price.

MACD & RSI

The MACD showed a bullish crossover early in the session, reinforcing the uptrend, but diverged in the final hours as momentum slowed. RSI rose above 60 but failed to reach overbought territory, remaining in a neutral-to-bullish range. A pullback to 50 could signal a consolidation phase.

Bollinger Bands

Volatility expanded in the first half of the session, with price moving from the lower band to the upper band. By the final hours, SHIBJPY consolidated near the middle band, indicating potential equilibrium. A retest of the lower band at 0.001765 could confirm its resilience, while a break above the upper band would signal renewed bullish momentum.

Volume & Turnover

Volume spiked at 0.001767 in the early evening (ET), coinciding with a price breakout. A second volume peak occurred at the session high of 0.001795, validating the short-term top. The final consolidation phase showed lower turnover, suggesting decreasing interest in aggressive directional bets. A divergence in volume during the doji at 0.001795 suggests caution in further bullish continuation.

Fibonacci Retracements

Key retracement levels from the 0.001753 low to the 0.001795 high include 38.2% at 0.001774 and 61.8% at 0.001787. Price paused near 61.8% before retreating, indicating a potential overbought condition. Daily Fibonacci levels from the prior week’s low show 0.001773 as a 38.2% retracement, aligning with key resistance.

Backtest Hypothesis

A potential backtesting strategy could involve entering long positions on a bullish engulfing pattern forming near key support levels (e.g., 0.001753), with a stop loss below the pattern’s low and a target at the 38.2% retracement of the following rally. This aligns with the observed price behavior and volume confirmation during the early session. The strategy would aim to capture early momentum while managing risk via clear stop levels. Given SHIBJPY’s recent structure, a trailing stop at 0.001772 could be used for aggressive positions as price trends higher.