- Traders should watch for resistance levels and use stop losses to mitigate risk.
- SHIB’s bullish trend may be losing steam, prompting caution among traders.
Shiba Inu (SHIB) bulls have dominated the market in the previous 24 hours, despite bearish efforts to grab control. Despite sliding to a low of $0.00001087 throughout the day, SHIB prices managed to rocket to a 24-hour high of $0.00001118 during its bullish domination. As of this writing, the bullish force was still strong in the market, resulting in a 1.89% increase to $0.00001114.
SHIB’s market capitalization and 24-hour trading volume increased by 1.91% and 29.34%, respectively, to $6,563,369,017 and $160,561,933. This spike indicates that there is still substantial demand for SHIBs in the market, and investors are actively trading the cryptocurrency despite its extreme volatility and hazards.
On the 2-hour price chart for SHIB, the upper Keltner Channel crosses 0.00001123, and the lower bar touches 0.00001082, with both bands rising, indicating a bullish trend. Traders could consider purchasing SHIB at present levels with a target sell price around the upper Keltner Channel.
With the development of green candlesticks and a price above the middle band, bullish momentum is gathering strength; nevertheless, traders should keep an eye on possible resistance levels and use a stop loss to mitigate risk.
The Relative Strength Index (RSI) reading of 61.91 supports the bullish momentum since it is above the 50 mark, suggesting that buying pressure is greater than selling pressure. While this RSI reading indicates the bulls have the opportunity to drive the market higher, traders should look for signs of overbought conditions that might trigger a temporary retracement.
With a reading of 8.3009, the Know Sure Thing (KST) moved out of the negative zone and into the positive zone, suggesting that bullish momentum is emerging in the market, and the trend is expected to increase. Consequently, traders may perceive this as a buy signal and contemplate taking a long position in the market.
If, on the other hand, the KST line crosses below the signal line, it may be taken as a sell signal, and traders may consider withdrawing long holdings or even opening short ones.
The SHIB’s bullish momentum is strong, with a Money Flow Index (MFI) rating of 80.76, suggesting buyers are in charge of the market. Traders may consider hanging on to current long positions or opening additional ones until the MFI rating falls below 50. However, since it is in the “overbought” area, traders should be careful and watch for indicators of a possible trend reversal.
The stochastic RSI’s recent plunge below its signal line with a reading of 90.46 and in the overbought area shows that the SHIB bullish momentum is fading, and a probable correction is on the way. Traders may consider taking profits or putting in stop-loss orders to safeguard their gains.
In conclusion, SHIB’s bullish momentum shows strength, but traders should remain cautious of possible resistance levels and overbought conditions.
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