As Shiba Inu Price Explodes, These Hidden Gems Might 10x
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Shiba Inu (SHIB) is on a make-or-break collision course with the 200-Day MA. Will SHIB burst or bounce ahead of the Shibarium launch?
Last week’s analysis touched on the likelihood of a SHIB retracement from resistance at $0.00001500. This is now firmly underway.
Shiba Inu has been in a retracement pattern for eight days as price action is forced towards downside convergence with a rising 200 Day MA.
Currently trading at $0.00001245 (a 24 hour change of -3%), bulls have fought to gain support at $0.00001250.
This has solidified as a support level over the weekend as SHIB seems to be finding a floor.
Price levels are still sat above more obvious local support at $0.00001150 – $0.00001200. The 200-Day MA has risen to reinforce this local support level.
How high could Shiba Inu (SHIB) go?
Tightening of Bollinger bands suggests a decisive move is nearing. A test of the 200-day MA is likely to force that directional decision.
Looking at SHIB’s indicators adds to the case for an imminent move.
The RSI 14 is reading bullish divergence at 39 – as SHIB seems to be moving to oversold territory. Notably, the RSI hasn’t topped out since February 4 – marking a 9-day cooldown on the RSI.
A glance at the MACD shows 0.000000026 – again, a bullish divergence (albeit minor). This, too, could reflect a rally sat astride the 200-Day MA.
Thus with an upside potential of $0.00001500 (+21%) and a downside risk of breakdown to $0.00001150 (-7%).
SHIB’s current Risk: Reward ratio is 3.0 – a very attractive entry – characterized by limited downside risk.
The huge uptick in burn rate has led some analysts to suggest there is a big comeback in the market inbound.
With deflationary pressure only set to increase with the launch of Shibarium (tipped to launch this week) – things could be on the up soon. Shibarium will result in billions of extra SHIB burned, increasing the scarcity of supply, and theoretically driving price up.