2021-10-8 20:49 |
In the last 24 hours, Shiba Inu (SHIB/USD) has risen by 55% on a 700% surge in trading activity. The token had reached a high of $0.00001482 but it has given up some of its gains. Many short-term traders are sitting on impressive profits and are wondering if the brief decline marks the end of a strong rally or if it can rebound to new highs.
Let’s take a look at some of the charts to better understand the coin’s outlook.
Taking a look at the chart above, we can see the following:
After a big fall and a period of consolidation, SHIBA INU has zoomed by over 290% this week alone.It is still 50% away from its all-time high but with the huge buying volumes, this can soon be achieved.Shiba Inu consolidated in a very tight range for over 5 months, and during this time it made a bullish RSI (Relative Strength Index) divergence (Divergence indicates that the current price trend is flagging, which provides insight into whether it’s time to make a move to buy or sell that particular stock). Is it too late to buy SHIB?Moving on to the short-term chart above we can observe the following.
Shiba price is now moving in a strong upward channel as on Thursday and a short position should be avoided until the lower trendline is broken with high selling volumes.A bearish RSI divergence can be seen, this is indicating that Shiba Inu will test the lower trend line soon.Finally, the one-day chart above offers some form of confirmation that Shiba is overbought.
This week the RSI is extremely high at 95, this is showing that is overbought at a very high level and people can start booking their profits very soon.It has taken rejection from the top and a long wick can now be seen in the daily candle of Thursday which shows that it may give a small pullback soon. ConclusionA long entry and buying SHIB now is very risky. Investors should wait for a pullback as the RSI indicates the coin is extremely overbought. Logic dictates a short entry can be taken, however, coins like Shiba are wildly unpredictable and it wouldn’t surprise investors if a new all-time high is reached soon.
The post Shiba rises another 50% Thursday morning: here’s what the charts are signalling appeared first on Invezz.
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