Shiba Inu (SHIB) Gains Over 8%, Technicals Indicators Foresee More Upside

In a notable display of resilience, the meme cryptocurrency Shiba Inu (SHIB) has showcased a bullish trend, marking an 8.42% increase throughout the day, as per Coinstats. The digital currency commenced the trading session at an opening price of $0.000025, briefly dipped to $0.00002467, but remarkably soared to an intraday high of $0.000027. This price movement carved a distinct V-shaped recovery on the charts, signaling a robust buying momentum post-dip despite a minor pullback due to profit-taking activities.

The cryptocurrency’s journey during the day illustrated a fierce battle between buyers and sellers, with the former maintaining dominance. After the dip, SHIB’s price managed to stabilize above the day’s midpoint, hinting at a sustained buyer interest. This phase of the market is critical, as analysts now turn their attention to potential resistance near the day’s peak, which could determine the future direction of SHIB’s price trajectory.

Shiba Inu (SHIB) 24-hour Price Chart (Source: CoinStats)

 

On the flip side, a fall below the intraday low might raise alarms about a possible bearish reversal, a scenario market participants are keenly monitoring. As trading volume slightly rose by 0.43%, reaching $1.811 billion, the SHIB token’s market capitalization also experienced a significant boost, increasing by 6.73% to settle at $15.836 billion.

SHIB/USD Technical Analysis

The 4-hour chart for the SHIB/USD pair displays early indications of a positive trend, highlighted by the MACD (Moving Average Convergence Divergence) indicator’s ascent. Positioned slightly above the signal line at negative 0.00000039, the MACD line suggests an increase in upward momentum for SHIB/USD in the short term, indicating a positive shift in market dynamics. 

 

This positive shift is further supported by the histogram, where bars are noticeably expanding and maintaining their position above the zero line, reinforcing the bullish momentum’s strength.

SHIB/USD 4-Hour Chart (Source: TradingView)

 

Complementing this analysis, the Relative Strength Index (RSI) stands at a neutral 51, above the typical threshold, pointing to a balanced market state for SHIB/USD. This neutrality suggests that the pair is neither overbought nor oversold, implying potential for further upside movement before hitting overbought conditions. Together, these indicators provide a cohesive view of SHIB/USD’s current momentum, hinting at a favorable short-term outlook.

Supporting the bullish sentiment around Shiba Inu (SHIB), the Chaikin Money Flow (CMF) indicator presents a positive outlook, with a reading of 0.13. This figure positions the indicator above the zero line, highlighting an influx of capital into the SHIB/USD pair and suggesting increased buying pressure. 

SHIB/USD 4-Hour Chart (Source: TradingView)

 

Additionally, the Stochastic Relative Strength Index (RSI) furthers the optimistic narrative by signaling a buying opportunity. This is observed as the stochastic oscillator ascends above the oversold territory. However, a slight descent below the D line indicates the potential for either consolidation or a brief retracement before the trend potentially resumes its upward trajectory.