Shiba Inu (SHIB) is on a collision course with the 200-day MA. Will SHIB explode or bounce before Shiberium launch?
The markets are in an uptrend as the Shiba Inu (SHIB) has started testing the 200-day MA with support. Can the launch of Shiberium save SHIB’s surging rally?
yesterday’s analysis The key collision between the price level and the rising 200-day MA focused on the course. This follows a retracement pattern anticipated last week after rejection at $0.00001500.
I can confirm that the 200-day MA is currently undergoing an important test. A bounce here could see Shiberium take SHIB to new heights. Bull confidence was boosted by the highly anticipated burn mechanism.
It is now the ninth day of the local retracement, the price is currently trading at the 200-day MA at $0.00001220.
This marked a daily change of -2.17% as the bulls continued to struggle against the support near $0.00001250.
The consolidation attempt at this level over the weekend is rising from the 200-day MA – highlighting the importance of this test.
The price level remained above a more clear local support at $0.00001150 – $0.00001200.
Shiba Inu (SHIB) On-Chain: Can Shiba Inu Selling Pressure Be Over?
Price action remains on the uptrend as traders await a decisive signal from a make-or-break test.
Looking at SHIB’s indicators, the signs are more hazy today.
RSI 14 shows bullish divergence at 38.5 – as SHIB continues to move into oversold territory. Notably, the RSI has not topped out since February 4 – marking a 9-day cooldown on the RSI.
This paints an interesting on-chain picture – SHIB illuminates the flow of off exchanges.
There has been a steady decline in net transfer volumes throughout February.
This came after a huge surge on January 9th, which saw a rush on exchanges ready to sell coins as prices rose. A sell-off was likely in the last week of January when the price faced resistance at $0.00001500.
Most likely, this was profit-taking by long-term holders after a tough crypto winter. The worst has been suggested by ongoing selling pressure – meaning a bounce in the 200 day MA could see skyrocketing momentum to the upside.
When we look at the balance of exchanges, the bullish sentiment prevails on the chain. The on-exchange balance of SHIB saw a decrease of -5.4% in February.
This signals that supply is accumulating and being removed from exchanges, possibly ahead of the Shiberium launch this week.
A look at the MACD shows the mildest bearish divergence – -0.00000002. It is negligible, and shows a support test of the 200-day MA.
How high can the Shiba Inu (SHIB) go?
Our current upside potential is a conservative $0.00001500 (+22.25%). The upside potential is poised to move beyond this level if prices bounce back. This is due to short selling pressure on the exchanges and Shiberium News.
There are limited downside risks to a breakdown here, with a drop to the previous support at $0.00001150 (-6.28%).
SHIB’s current risk:reward ratio is 3.55 – a very attractive entry – featuring limited downside risk.
But why is the Shiba Inu (SHIB) rallying?
In yesterday’s Shiba Inu price analysis, it was highlighted Shiba Inu Burnrate increased by 1,000% in hours.
The massive increase in burn rate has led some analysts to suggest that there has been a major return to inflows in the market.
With deflation pressure only set to escalate with the launch of Shiberium (tipped to launch this week) – things may soon be on the upswing. The shibarium would result in billions of additional SHIBs burning up, increasing supply shortages, and theoretically increasing prices.
What is happening to the CPI today?
Check out in-house crypto journalist James Bury’s analysis of today’s CPI data and what it could mean for your portfolio.
Shiba Inu (SHIB) optional
While SHIB may not rally massively in the near future, there are other high-potential crypto projects that are worth investing in alongside SHIB. Accordingly, we review the top 15 cryptocurrencies for 2023, as analyzed by crypto news Industry Talk Team.
The list is updated weekly with new altcoins and ICO projects.
Disclaimer: The Industry Talks section features insights by crypto industry players and is not part of the editorial content of 0x0news.com.
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