Shiba Inu encounters key resistance zone: Assessing next steps

SHIB

As a seasoned crypto investor with battle-tested nerves and a knack for spotting trends, I find myself intrigued by Shiba Inu’s [SHIB] current trajectory. Having witnessed its meteoric rise and subsequent dips, I can say with confidence that this dog is far from finished barking yet.

As Bitcoin [BTC] leads the market into a bullish phase, altcoins like Shiba Inu [SHIB] are gearing up for a significant price increase.

As per the latest figures, Shiba Inu’s price has surged by approximately 17.62% over the past week and an additional 10.59% every day. This growth places Shiba Inu as the 13th largest cryptocurrency in terms of market capitalization.

Yet, further analysis reveals a potential for even more gains than SHIB has experienced so far.

The current state of SHIB on the chart

Since April, Shib has been confined in a descending triangle or “falling wedge” pattern. After hitting a support level of 0.00001313, it rebounded, propelling the recent increase in its trading value.

Yet, the current surge encounters a significant hurdle as it nears the substantial resistance point of 0.00001740, a level that traditionally halted prior price increases.

If the current resistance level persists, there might be significant selling activity which could cause Shiba Inu (SHIB) to drop to approximately 0.00001313. On the flip side, if selling pressure doesn’t develop, SHIB may strive towards a higher goal of 0.00002954.

AMBCrypto has analyzed traders’ feelings to determine if these levels are feasible and estimate the probability of a breakthrough occurring.

A strong rally is still in sight for SHIB

As reported by Coinglass, the trading volume for SHIB has significantly spiked, recording an impressive jump of 256.40%, bringing it up to approximately $217.29 million.

The increase in trading activity aligns with a rising trend on the graph, suggesting a significant buildup of bullish power in the market.

This alignment suggests that the potential for a continued upswing remains high.

Furthermore, it’s worth noting that Open Interest, which counts the quantity of unfilled futures derivative contracts, has experienced a significant increase by approximately 35.59%.

An increasing Open Interest suggests that more traders are choosing to hold long positions on SHIB, predicting that the coin’s price may further rise beyond its present value.

Positive feelings from investors might boost the chances of Shiba Inu (SHIB) overcoming potential obstacles in its path, possibly maintaining its upward trend.

More bullish confirmation but with a clause

The Relative Strength Index (RSI), a tool used to gauge market momentum and identify overbought or oversold conditions, presents a nuanced picture.

Currently, the Relative Strength Index (RSI) stands at 70.56, signaling that the market is approaching overbought territory. This could imply a possible pullback from its present position, which in turn might cause Shiba Inu (SHIB) to retrace its steps.

Read Shiba Inu’s [SHIB] Price Prediction 2024–2025

Despite this, the overall market trend remained bullish. A higher RSI typically indicates continued momentum, suggesting that SHIB could still rally and break through resistance levels.

In my research, observing a dip in the Relative Strength Index (RSI) might indicate a brief pause or correction in the trend, serving as a momentary break before the upward momentum picks up again. However, I firmly believe that the Shiba Inu coin (SHIB) is poised for a surge.

2024-09-26 17:44

The current state of SHIB on the chart

A strong rally is still in sight for SHIB

More bullish confirmation but with a clause

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