SHIB Technical Analysis: Trend Reversal Lacks Bullish Commitment
Shiba Inu was designed to be an Ethereum-based alternative to Dogecoin's Scrypt mining algorithm. Shiba Inu’s SHIB token is part of a group of cryptocurrencies with a dog theme, such as Baby Dogecoin, Dogecoin, JINDO INU, Alaska Inu, and more.
Let us read ahead to know more about Shiba Inu's technical analysis.
Past Performance of SHIB
The SHIB coin price rose more than 35% in the past 72 hours, resulting in multiple bullish engulfing candlesticks in the 4-hour chart. Furthermore, the price rises above the $0.000035 barrier. Therefore, the bullish recovery promotes long entry for traders.
SHIB Technical Analysis
The SHIB coin price breaks above the 200-day EMA in the 4-hour chart as the bullish rally continues. Moreover, the rising 50- and 100-day EMAs increase the chances of a bullish crossover.
The pivot points and the price action levels mark resistance levels at $0.000045 and $0.000055. And, on the opposite end, the support levels are $0.000035 and $0.000028.
The RSI indicator at 66% in the 4-hour chart shows rejection from the overbought zone. Therefore, a short-retracement is possible.
The MACD indicator shows a slight decrease in the gap between the MACD and signal lines in the 4-hour chart. However, the lines maintain an uptrend in the positive direction.
Overall, the technical indicators showcase the overbought nature of the SHIB coin. Moreover, they hint at a short-term retracement if the prices fail to sustain above the 200-period EMA in the 4-hour timeframe.
Upcoming Trend
The bullish trend shows an impressive rise on the SHIB price chart for the 4-hour time frame. There is, however, the possibility of a retest, which will result in an immediate retracement. Thus, traders will soon be able to gain entry on the retest.