Market Analysis, Top Stories

Shiba Inu At 8th Rank Surpassing USDC, DOGE & DOT – How Far Can This Rally Continue?

On expectations that the cryptocurrency’s enormous price gain in October has left it overvalued, Shiba Inu (SHIB) may suffer a drop of nearly 45% to 55%, according to a major price indicator soon.

The Relative Strength Index (RSI) is a technical indicator that examines the magnitude of an instrument’s recent price fluctuations to determine whether it is oversold or overbought. The result can range from 0 to 100, with a reading below 30 indicating that the instrument is oversold and reading beyond 70 indicating that it is overbought.

SHIB surpassed level 70 on 3rd October and reached a high of roughly 94 three days later. It’s overbought reading, in theory, should have caused a price drop. However, as the monthly session progressed, SHIB continued to rise, eventually reaching a five-month high of $0.00004860 on 26th Oct.

Divergence To Downside

Shiba Inu’s RSI, on the other hand, fell lower, resulting in a large divergence between price and momentum for SHIB. This signaled underlying weakness in the cryptocurrency’s ascent, boosting the possibility of a drop in the coming days.

On the Shiba Inu daily chart, the latest three price candles produced a run of higher highs at their close. However, this was followed by three days of decreased trading volumes, confirming the SHIB uptrend’s underlying weakness.

Shiba Inu At 8th Rank Surpassing USDC, DOGE & DOT - How Far Can This Rally Continue?

Shiba Inu Price Chart – Source: Coinmarketcap

This does not imply a price drop right away. SHIB bulls appeared to be aiming at $0.0001 USD as their next upside goal, according to the breakout that followed the creation of a Bull Pennant indicator. At the reporting time, SHIB is already trading at $0.00007492 USD which is 40% up for the day. As per coinmarketcap, SHIB is ranked at 8th position with daily volume at $42,432,178,980 USD, up by 200% in the past 24hrs surpassing Dogecoin, Polkadot & USDC.

SHIB Price Can Drop to 45% to 55% Soon – Technical Indicator

Between the Shiba Inu’s swing high of $0.000090 USD and the swing low of $0.00000621, a Fibonacci Retracement graph revealed a string of levels that previously worked as support and resistance.

For example, the graph’s 1.618 Fib line almost coincided with the Shiba Inu’s Bull Pennant goal, which was only two-notch higher at $0.00007224.

SHIB’s ability to test the $0.00006222 USD – $0.00007224 price range before enduring a major price correction was raised by the resistance confluence of the 1.618 Fib line and Bull Pennant target.

The next negative objective for the cryptocurrency is approaching the 1.0 Fib line of $0.00005466, which is nearly 45%-55% below the current price of $0.00007396 USD.

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