Shiba Inu has substantially recovered over the last week; it surged over 20% in the same timeframe. Over the last 24 hours, SHIB has appreciated by 2.9%, but despite the rise in value, the coin has remained stuck below the $0.000011 mark.
The coin broke above its stern resistance mark of $0.000010, which had not been breached for the past two months. SHIB was trading within an ascending parallel chain, which showed bullishness; however, the coin was currently outside the ascending trendline.
Related Reading: Myth Buster: Ethereum Shanghai Hard Fork Won’t Create Major Selling Pressure
As it moved out of the ascending trendline, it could not break past its immediate resistance level. The technical outlook of the coin still depicts bullishness on the chart for SHIB. Shiba Inu was overvalued at the time of writing, and if a coin is overbought, there are chances of a price correction.
This could be true if the coin does not break past the $0.000011 level. Currently, SHIB is trading 87% below its all-time high of 2021.
Shiba Inu Price Analysis: One-Day Chart
SHIB was exchanging hands at $0.0000106 at the time of writing. The altcoin moved outside the ascending parallel line and experienced resistance at $0.000011. Overhead resistance for Shiba Inu was at $0.0000108; a move above that level can push SHIB to breach the $0.000011 mark.
The $0.0000112 mark has previously acted as a strong resistance for the coin. If the coin fails to move above the resistance line, it could fall to $0.0000100 and then to $0.0000097 before rising again.
This could also present a shorting opportunity to the traders. The amount of SHIB traded in the last session was green depicting bullish momentum.
SHIB has managed to secure a multi-month high regarding demand. The Relative Strength Index was at 80, which meant that the asset was overvalued and buyers exceeded sellers. The last time the indicator touched the 80-mark was in August 2022, leading to a price correction.
The asset price moved above the 20-Simple Moving Average (SMA) line and was also above the 50-SMA (yellow) line as buyers drove the price momentum. Shiba Inu, however, struggled to move above the 200-SMA line (green).
The altcoin price may remain congested during the following trading sessions due to lateral trading. However, the Moving Average Convergence Divergence (MACD) formed green bars tied to buy signals for the coin.
The last signal declined in strength, indicating that buying the asset might not be the right decision. The Directional Movement Index was positive, as the +DI (blue) line was above the -DI (orange) line.
The Average Directional Index shot up near 40, depicting strength in the current price action. This meant that the overall SHIB was positive, but as the coin was restricted under the 200-SMA, there could be continued consolidation, leading to a loss of value.
Featured Image From Unsplash, Charts From TradingView.com.