- SHIB could be set to build on its recent increase, technical analysis revealed.
The difference in exchange flow suggested sideways movement before the price bursts upward.
As a seasoned crypto investor with a keen interest in Shiba Inu [SHIB], I find the recent price action intriguing. Based on the technical analysis presented by AMBCrypto, SHIB’s golden cross formation on the 4-hour chart could indicate an upcoming bullish trend. However, it is essential to note that the Money Flow Index (MFI) has dipped below the oversold level, which might result in a possible rebound.
The Shiba Inu token [SHIB] experienced a noteworthy rise of 11.69% within the past week. Yet, it has faced challenges in sustaining this growth trend over the previous two days.
Despite that observation, certain technical indicators point towards a potential price recovery for SHIB/USD. Notably, we noticed the formation of a “golden cross” pattern on the 4-hour chart.
As a researcher studying technical analysis in the financial markets, I would advise looking out for the golden cross formation. To identify this pattern, examine the relationship between two moving averages – the shorter Exponential Moving Average (EMA) and the longer one. The golden cross occurs when the shorter EMA crosses above the longer EMA, signaling a potential bullish trend.
Shiba Inu flashes a bullish sign
At the current moment of reporting, the moving average line for the 20-day period (represented by blue) rose above the moving average line for the past 50 days (illustrated by yellow). This event is known as a “golden cross,” which signifies a bullish market trend.
As a researcher studying Shiba Inu (SHIB), I’ve observed that the cryptocurrency’s price remained above its 50-day Exponential Moving Average (EMA). Consequently, my initial hypothesis or investment thesis has not yet been disproven.
In contrast, the Money Flow Index (MFI) dropped to 30.21. This signifies a significant outflow of capital from the SHIB market. In a pessimistic market scenario, this may push the price down to $0.000022.
If the Moving Average Convergence Divergence (MFI) indicator reaches an oversold level, it could potentially be around 20.00 or lower, then the price of Shiba Inu’s native token may experience a bounce back.
Sustaining the golden cross if (when) this happens could take the price higher.
The estimated initial price for SHIB could be around $0.000027. Subsequently, its value might increase to approximately $0.000030, which was nearly the peak it reached in March.
From a purely technical standpoint, it may be sufficient to analyze this situation. Therefore, AMBCrypto examined the token’s status on the blockchain.
Consolidation before breakout
By evaluating both the tokens coming into and going out of an exchange, we identified situations where the inflow surpassed the outflow. In such cases, the token under consideration may be subject to increased selling activity, potentially leading to a decrease in its value.
An opposing perspective holds that a larger amount of tokens being sent out for exchange is more likely to lead to a price rise for SHIB. At present, the exchange outflow for this cryptocurrency amounts to 53.20 billion, while the inflow stands at 50.55 billion.
Previously, the 3 billion discrepancy between the data points may not have been substantial enough to trigger a unidirectional trend. Consequently, SHIB‘s price could stabilize temporarily.
Based on our perspective, the price could fluctuate between $0.000023 and $0.000025 in the future. It would be important for traders to monitor the netflow moving forward.
As a crypto investor, I’ve observed that when the number of Shibaswap transactions (outflow) more than doubles the number of new Shiba Inu coins being bought and sold on exchanges (inflow), it can lead to a gradual increase in SHIB‘s price. If this trend continues, we might see a breakthrough and reach the resistance level at $0.00030.
Read Shiba Inu’s [SHIB] Price Prediction 2024-2025
A summary of the analysis suggested that this rise could come to pass before the end of May.
Although there’s a chance that this forecast may be disproven, it is crucial for traders to keep an eye on any shifts in Shiba Inu’s on-chain data and consider its technical indicators as well.
Read More
- JASMY PREDICTION. JASMY cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- UXLINK PREDICTION. UXLINK cryptocurrency
- METIS PREDICTION. METIS cryptocurrency
- QUINT PREDICTION. QUINT cryptocurrency
- DOGS PREDICTION. DOGS cryptocurrency
- DOP PREDICTION. DOP cryptocurrency
- TWT PREDICTION. TWT cryptocurrency
- DESO PREDICTION. DESO cryptocurrency
- WXT PREDICTION. WXT cryptocurrency
2024-05-19 09:11