The Shiba Inu has recovered greatly over the past week. It has jumped more than 20% in the same time frame. Over the past 24 hours, the value of SHIB increased by 2.9%, but despite the appreciation in value, the coin remained stuck below the $0.000011 level.
The coin broke above the stringent resistance mark at $0.000010, which has not been breached in the past two months. SHIB trading was trading within an ascending parallel series, which showed an upward trend. However, the coin was currently outside the bullish trend line.
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Since it broke out of the uptrend line, it was unable to break through the immediate resistance level. The technical outlook for the currency is still depicting a bullish trend on the SHIB chart. The Shiba Inu is overvalued at the time of writing, and if the coin is overbought, there are chances of a price correction.
This may be true if the currency has not crossed the $0.000011 level. Currently, SHIB is trading 87% below its all-time high in 2021.
Shiba Inu Price Analysis: 1-day chart
SHIB was exchanging hands at $0.0000106 at the time of writing. The altcoin moved out of the ascending parallel line and saw resistance at $0.000011. Shiba Inu overhead resistance is at $0.0000108; A move above this level could push SHIB to breach the $0.000011 mark.
The $0.0000112 mark previously acted as a strong resistance for the currency. If the coin fails to move above the resistance line, it could drop to $0.0000100 and then to $0.0000097 before rising again.
This may also present a selling opportunity to traders. SHIB’s trading volume in the last session was green, indicating bullish momentum.
Technical Analysis
SHIB managed to achieve a multi-month high in terms of demand. The RSI was at 80, which means that the asset is overvalued and the buyers have outpaced the sellers. The last time the index touched the 80 mark was in August 2022, which triggered a price correction.
The price of the asset moved above the 20-SMA line and was also above the 50-SMA line (yellow) as buyers led the price momentum. However, the Shiba Inu struggled to move above the 200-SMA line (green).
The altcoin price may remain crowded during the following trading sessions due to sideways trading. However, the Moving Average Convergence Divergence (MACD) formed green bars associated with buy signals for the currency.
The recent signal strength has decreased, which indicates that buying the asset may not be the right decision. The directional movement indicator was positive, with the +DI line (blue) above the -DI line (orange).
The Average Directional Index has moved up near 40, which indicates the strength of the current price movement. This means that the overall SHIB is positive, but since the coin is confined below the 200-SMA, there may be a continuation of the consolidation, leading to a loss of value.
Featured image from Unsplash, charts from TradingView.com.
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