Shiba Inu Faces Major Resistance, Investors Analyzing Future Moves

Shiba Inu encounters key resistance zone: Assessing next steps

# Shiba Inu Navigates Key Resistance Levels, Traders Eyeing Future Prospects

Amid a bullish turn in the market led by Bitcoin (BTC), cryptocurrencies like Shiba Inu (SHIB) are gearing up for a notable upward movement. Over the past week, SHIB has surged by 17.62% and on a daily basis by 10.59%, solidifying its position as the 13th most valuable digital asset by market capitalization.

Despite these gains, a deeper dive into the data hints at a potential for further growth beyond what SHIB has already achieved.

## **Analyzing SHIB’s Current Chart Trends**

SHIB has been following a downward trend within a falling wedge pattern since April. Recently, it managed to break out of this pattern following a rebound from a crucial support level at 0.00001313, which played a significant role in its recent price uptick.

However, as the rally progresses, SHIB is now faced with a critical obstacle as it nears a major resistance level at 0.00001740, a historical barrier that has restricted upward movements in the past. If this resistance level holds firm, leading to notable selling pressures, SHIB could retrace towards 0.00001313. Conversely, a successful breakthrough could propel SHIB towards a higher target of 0.00002954.

Crypto experts have delved into trader sentiments to evaluate the plausibility of these scenarios and determine the likelihood of a breakout.

## **Anticipating a Strong Momentum for SHIB**

Coinglass data reveals a substantial surge in SHIB’s trading volume, skyrocketing by 256.40% to hit $217.29 million. This surge in trading volume coincides with an upward trajectory on the chart, signaling a strong presence of bullish momentum in the market. This alignment indicates a promising outlook for a continued upward move.

Moreover, the Open Interest, a measure tracking outstanding futures contracts, has also witnessed a significant uptick of 35.59%. A positive Open Interest suggests an increasing number of traders taking long positions, anticipating further price advances for SHIB beyond its current levels. The optimistic stance from buyers enhances the likelihood of SHIB overcoming resistance barriers and maintaining its upward momentum.

## **Positive Signs with a Caveat**

The Relative Strength Index (RSI), utilized to measure market momentum and spot overbought or oversold conditions, presents a nuanced analysis. At the moment, the RSI stands at 70.56, hinting at nearing overbought territory. This indicates a probable retracement in SHIB’s price from its current position.

Nevertheless, the overall market sentiment remains bullish. A higher RSI often suggests sustained momentum, implying that SHIB might continue its rally and break through resistance levels. Conversely, a decline in the RSI could signal a temporary pause before the upward trend resumes. Despite potential fluctuations, the prevailing trend suggests SHIB is poised for further gains.

Leave a Comment