SHIBA INU (SHIB) Generates Unconfirmed Bullish Divergences

SHIBA INU (SHIB) is showing bullish reversal signs inside a long-term horizontal support area. However, the potential reversal has not been confirmed yet.

SHIB has been decreasing since reaching an all-time high price of $0.000088 on Oct 28, 2021. The dip has led to a local low of $0.0000074 on June 13. This amounted to a decrease of 90.50% measuring from the all-time high.

The price is close to the $0.000007 support area, which has been in place since 2021. 

Despite the proximity to this support level, the weekly RSI is bearish since it is below 50 and falling, indicating that the trend is still bearish. 

The price may also have been following a descending resistance line since the all-time high, but its slope has not been confirmed yet.

Potential bounce

The daily time frame suggests that a bounce could occur soon. The main reason for this is the considerable bullish divergence (green line) that has developed in the daily RSI. 

In order for this divergence to be confirmed, the indicator has to move above 37 (white line), the top between the two divergences.

For this to occur, the price would likely have to break out from a short-term descending resistance line (dashed). In turn, this could lead to an upward movement towards the next closest resistance line at $0.000017.

Short-term SHIB movement

Finally, the two-hour chart shows that SHIB has been increasing inside an ascending parallel channel since May 12. Such channels usually contain corrective movements, meaning that an eventual breakdown from it would seem likely.

Moreover, the price was rejected by the resistance line of this channel on June 16 (red icon) and has been falling since. It’s currently trading below the channel’s midline. This is a bearish sign that indicates a breakdown is likely.

The 1.27 external Fib retracement is found at $0.000007, coinciding with the previously outlined long-term support area. If that does not hold, the next closest support area would be at $0.00000645, created by the 1.61 external Fib retracement level.

For Be[in]Crypto’s latest bitcoin (BTC) analysisclick here

The post SHIBA INU (SHIB) Generates Unconfirmed Bullish Divergences appeared first on BeInCrypto.

Earning Passive Income With Crypto

Related Posts

Bitcoin Miners Bail out as Energy Prices Soar and Profitability Plunges

More and more Bitcoin miners are throwing in the towel amid soaring energy prices and plunging profitability. This has had a knock-on effect on hash rates and…

Cantina Royale Taps Elrond Apes to Boost In-game Cross Chain NFT Collections

Cantina Royale and Elrond Apes are teaming up to enhance the appeal of the upcoming top-down tactical arcade shooter with play-to-earn mechanics. Elrond Apes NFTs will be…

Bitcoin (BTC) Attempts to Create Higher Low Above $20,000

Bitcoin (BTC) is attempting to find support and create a higher low after a breakout from a short-term resistance line. BTC has been decreasing underneath a descending…

Axie Infinity’s Ronin Bridge Relaunches Following March Hack

The Ronin Bridge is open and ready for deposits and withdrawals after it suffered a major security breach in March. The network said the decision to open the bridge…

China Blockchain Alliance Executives: Virtual Currency the ‘Largest Ponzi Scheme in Human History’

The chairman of China’s Blockchain Service Network (BSN) Development Alliance Shan Zhiguang, and his colleague, insisted in a recently published op-ed that virtual currency is “undoubtedly the…

Grayscale Prepares Itself for SEC Ruling on Spot ETF

Grayscale CEO Michael Sonnenshein has told investors he is ready for a spot bitcoin exchange-traded fund (ETF) regardless of what the Securities and Exchange Commission (SEC) says….