The price of Shiba Inu has seen significant growth in January, however, it may be wise to proceed with caution as longer-term trends do not indicate a strong bullish market.
- Shiba Inu’s price rose by 27% last week.
- SHIB’s recent hurdle comes with inherent risk to the downside.
- Invalidation of the bearish thesis is a breach above $0.00001516.
Is the potential for price increases for Shiba Inu limited?
Shiba Inu has caught the attention of investors as the recent volatility has presented several opportunities for day traders. While the technical indicators currently point upward, there are reasons to be cautious about the coin’s long-term potential. The RSI on the daily time frame is bullish, but the weekly RSI shows a bearish divergence, suggesting that the recent rally may be short-lived and the price could drop 25% from its current level. It’s worth noting that careful analysis and due diligence are recommended before making any investment decisions
Shiba Inu’s current trading price is $0.00001042. The Relative Strength Index (RSI), a tool used to evaluate the likelihood of future price movement based on past performance, reveals a mixed outlook. While the RSI on the daily time frame is bullish and has surpassed the overbought threshold of 70 during the recent rally, the weekly RSI has not been significantly impacted by the price increase and is currently in neutral territory. Additionally, there is a bearish divergence visible in the weekly RSI, indicating that the current uptrend may not be sustainable in the long term.
Additionally, the level of liquidity above the bearish divergence seen in the weekly RSI may be an indication of the smart money’s perception of Shiba Inu’s future growth potential. Should the price break above $0.00001516, it could refute the bearish outlook and lead to a rally toward the August high of $0.00001793, representing a 75% increase from the current market value of Shiba Inu.