As the digital currency market continues to evolve, investors are eager to stay updated on potential revolutionary coins like Shiba Inu. In the past three weeks, the ShibaInu price has remained above the crucial support trendline of the symmetrical triangle pattern, despite sellers not being able to follow up on their attack. This indicates a sign of active accumulation in anticipation of a possible price upswing.
However, traders seem to lack conviction in deciding the coin’s direction, as observed through the formation of a Doji candle on the daily chart. Such a pattern could mean that consolidation may persist for another few days.
Although Shiba Inu faces some uncertainty, the support trendline previously resulted in substantial upward movements. From June to August 2022, the price experienced a 155% increase, followed by another rally of 101% in January 2023. If the bullish breakout takes place above the immediate resistance level of $0.0000091, a fresh recovery rally might begin, surging Shiba Inu by approximately 50%. The potential target lies near $0.0000136.
The Relative Strength Index (RSI) exhibits a bullish divergence, as buying pressure increases at the lower trendline, giving further credence to the possibility of a rally. With support and resistance levels in mind, Shiba Inu might face overhead supply at $0.00000924 and $0.00001055, while crucial demand zones include $0.00008 and $0.000007.
On the other hand, it’s crucial to consider potential risks as well. A whale shifting 500 billion SHIB tokens lends credence that a dump may be on the horizon. Moreover, the intraday trading volume has decreased by 40% to $56.9 million, which could impact price stability.
The cryptocurrency market remains inherently volatile, and while historical patterns may suggest positive outcomes, they are not guarantees for future results. Investors should conduct thorough research before allocating their assets to specific coins, keeping in mind that personal financial loss remains a possibility. The digital currency arena has demonstrated immense growth and innovation over the years, but taking measured steps is essential to safeguard investments.
Source: Coingape
