As a seasoned crypto investor with battle-scarred eyes from the rollercoaster ride that is the digital asset market, I find myself standing at the precipice of a potential turning point for Shiba Inu (SHIB). The dog-themed meme coin has been through its fair share of ups and downs, but the current chart setup presents an intriguing opportunity.
1. The price of Shiba Inu experienced a significant decline during the market crash on August 4. Although it has since recovered, SHiba Inu has been unable to reach its previous peak prices due to lingering fear in the market. On Wednesday, the SHIB price dropped by 2.5%. However, on-chain indicators suggest that a bullish trend may be developing. The Shiba Inu chart shows a potential double bottom formation, which could potentially reverse the fortunes for this dog-themed meme coin.
Shiba Inu Price Wants to Break Out
The current Shib price graph indicates a continuous decline, shown as a sloping channel. Lately, the price dipped to touch the bottom of this channel, hinting at a possible temporary upturn or continued descent based on future market movements.
For this cryptocurrency, the prices might face strong resistance at two points: one is approximately $0.00001718 (from the 50-day Exponential Moving Average), and another is around $0.00001855 (due to the 200 EMA’s long-term importance). Moreover, an earlier resistance level near $0.000015, which marks the top of a downward trend, could potentially provide additional resistance.
From another perspective, the bottom end of the channel, roughly at $0.000011, serves as a crucial point of resistance. If the price falls below this channel, the next potential support would be approximately $0.000008, which is indicative of past periods of price consolidation.
The latest candlesticks close to the lower limit of the channel indicate a possible double-bottom formation, which is generally bullish. If this pattern holds, it might trigger a brief surge towards approximately $0.00001855. If that level is exceeded, the price could continue climbing up to around $0.00002748.
In simpler terms, the Relative Strength Index (RSI) stands at around 31.47, close to an area where prices have fallen significantly. This could mean that the asset’s current price might be too low in the short term, potentially signaling a rebound or change in direction. Additionally, the Chaikin Money Flow (CMF) is currently at 0.07, hinting at a small increase in money flowing into the asset, implying that there could be growing interest among buyers.
If the cost of Shiba Inu surpasses $0.000014 and ends the day above its 50-day moving average, this could indicate a robust market, potentially making Shib bullish. The subsequent aim would be approximately $0.00001855, a level where the 200 EMA is located and also close to the upper boundary of the channel.
On-Chain Analysis Support Inbound Rally
Information from Shibarium Explorer, the primary source for data about the Shiba Inu Blockchain, indicates that brand-new accounts on the platform reached an unprecedented peak on August 6th. This trend suggests growing acceptance of the network, often associated with a positive outlook for the value of Shiba Inu, potentially leading to increased prices.
Based on information from IntoTheBlock, there was a rise in larger transactions involving Shiba Inu (SHIB) on August 5, suggesting heightened whale activity. Although this peak subsided on August 6, it remains significantly greater than the transaction volume seen over the preceding seven days.
Observing a surge in whale actions and a growing trend in Shiba Inu values suggests a resurgence of investor attention towards this asset. Such heightened interest might subsequently boost the price even further. A significant upsurge in trading volume alongside any price rise would be a more compelling indicator for a possible market reversal.
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2024-08-07 15:14