- Shiba Inu price has set up a technical setup known as exaggerated divergence, hinting at an uptrend.
- Investors need to wait until SHIB breaks through the $0.0000218 to $0.0000246 breaker to reach $0.0000321.
- A daily candlestick close below $0.0000170 will invalidate the bullish thesis.
Shiba Inu price shows potential for an uptrend as it forms a specific bullish pattern on the daily time frame. This formation could trigger a move for SHIB to retest a significant level after a decent uptrend.
Shiba Inu price readies its propulsion system
Shiba Inu price produced somewhat of an equal low around the $0.0000203 level, making it into a makeshift support level for the time being. This development occurred after SHIB crashed 10% on April 30 to breach the $0.0000218 to $0.0000246 demand zone.
This downswing flipped the said demand zone into a breaker that will prevent any further ascent. Therefore, any uptick in buying pressure needs to overcome the trapped investors’ sell pressure to see a move higher.
One of the proponents of an upswing is the Relative Strength Index (RSI), which is currently dipping into the oversold territory of around 30. Often, reversals occur when the asset is extremely oversold.
To add credence, the RSI is producing a higher high, indicating that the momentum is increasing and the Shiba Inu price has produced equal lows around $0.0000203. This technical formation is known as the exaggerated bullish divergence setup.
This setup forecasts and foreshadows an upswing. Therefore, a daily candlestick close above the breaker’s upper limit at $0.0000246 will indicate the resurgence of buyers. In such a case, SHIB will trigger a run to $0.0000321, constituting a 50% ascent from the current position at $0.0000213.
SHIB/USDT 4-hour chart
Regardless of the bullishness of the setup, Shiba Inu price needs to stay neutral, which will happen if it does not produce a lower low. However, a daily candlestick close below $0.0000170 will create a lower low and invalidate the bullish thesis for Shiba Inu price.
In such a case, SHIB could trigger a swift crash to $0.0000094 due to the fair value gap that extends from $0.0000170 to $0.000071.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
VanEck sees Bitcoin reaching $61 trillion market cap, Marathon buys $100 million BTC
Bitcoin declined by 1% on Thursday following asset manager VanEck's forecast that the top digital asset will reach a $61 trillion market capitalization by 2050.
Ethereum Classic price sets for a rally following retest of key support
ETC edges higher by 2.3% and trades around $22.60 at the time of writing on Friday after testing a key support area the day before. On-chain data showing increased account growth suggests a bullish move ahead. Ethereum Classic price faced rejection by the daily resistance level of $25.13 earlier this week.
Celebrity meme coins lose their shine
Celebrity meme coins report by Jupiter Slorg on Thursday shows that these tokens have been in deep waters since early July after experiencing heavy growth in June. In a recent analysis, Jupiter Slorg revealed that celebrity meme coins are down by an average of 94% from their all-time highs.
Ripple gains 5%, Mark Cuban says Kamala Harris’ nomination could affect SEC lawsuit
Ripple (XRP) made a comeback above key psychological resistance early on Wednesday. Crypto traders are optimistic after the Ethereum Exchange Traded Fund (ETF) launch. Entrepreneur and investor Mark Cuban recently shared his comments on how Kamala Harris’ nomination to the Presidential elections could influence crypto regulation.
Bitcoin: Will BTC manage to recover from recent market turmoil?
Bitcoin recovers to $67,000 on Friday after finding support around $63,500 a day before. Still, BTC losses over 1.50% on the week as Mt. Gox persists in transferring Bitcoin to exchanges.