Shiba Inu (SHIB), the well-known meme cryptocurrency, has been on a rollercoaster ride over the last month, now priced at $0.00002746. The past month saw a steep 31.22% decline in its value, with a 12.96% drop in the last week, though it marginally rose by 0.09% in the last 24 hours. Could this signal the beginning of a recovery?
Currently, with a market capitalization exceeding $15.8 billion, Shiba Inu is the 12th largest crypto in terms of market cap. Its 24-hour trading volume has surged to over $680 million, marking a 6.78% increase, giving it a 4.36% volume-to-market-cap ratio.
Mixed Signals in SHIB’s Technical Analysis The technical analysis of SHIB presents a complex scenario with signals of both optimism and caution. On the weekly chart, SHIB is navigating within a tight range from $0.00002510 to $0.00003155. Since reaching its peak at $0.00004580 on March 4th, the trend has largely been bearish, with a brief bullish close last week.
This week’s indicators lean more towards a bearish outlook, as the weekly candlestick dips below the previous week’s close, hinting at growing pessimism. A critical support level is being tested at the channel’s lower boundary. The Relative Strength Index (RSI) hovers around 68.50, nearing the overbought territory, potentially capping any immediate upward trends.
On the daily chart, a bullish trend was noted since the price hit the $0.00002510 mark, with a positive close on April 4th, 2024. Despite this, today’s trend shows bearish leanings.
Since March 15th, SHIB has been confined within a specific range, testing and being rejected by the support and resistance levels on March 20th and March 28th, respectively.
A Glimmer of Hope with the Bullish Pennant Interestingly, since April 3rd, SHIB has flirted with both the channel’s support and the base of a bullish pennant pattern, suggesting a potential uptick in bullish market sentiment soon. This is further supported by the daily RSI at 47, nearing the oversold condition, hinting at a possible upcoming bullish momentum.
On the 4-hour chart, SHIB found support on March 20th at $0.00002510 and managed to break free from a descending trendline that started from its recent high. On April 4th, it tested the support of both the bullish pennant and the channel.
A bounce off this vital dual support could see prices aiming for the resistance at $0.00003125, encompassing several key levels including the channel’s upper limit and a broken ascending trendline from April 1st.
Should the price drop further, breaking below the support at $0.00002510, it might stall any immediate upward moves. Yet, the bullish pennant pattern and RSI indications near the oversold territory predominantly suggest a stronger bullish sentiment could prevail.