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SHIB’s Short-term Correction Offers Potential Bullish Opportunity

Published 04/25/2023, 01:01 PM
Updated 04/25/2023, 01:30 PM
SHIB’s Short-term Correction Offers Potential Bullish Opportunity
SHIB/USD
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  • Shiba Inu (SHIB) was changing hands at $0.00001021 at press time.
  • SHIB could face another level of support if it continues to experience downward pressure.
  • During the decline, SHIB found support at $0.00001015 and faced resistance at $0.00001037.

Shiba Inu (SHIB) has recently been one of the most talked-about cryptocurrencies, thanks to its explosive price movements and growing popularity among investors. With a current value of $0.00001021, SHIB has seen a slight decline from its previous highs, but its 1-day support level of $0.00001015 suggests that it may soon recover.

However, the proximity of the intraday low to the 7-day low of $0.00001012 indicates that SHIB could face another level of support if it continues to experience downward pressure. On the other hand, if the $0.00001037 resistance level is breached, the following resistance levels may be at $0.00001052 and $0.00001073, respectively, which could indicate a potential upward trend for SHIB.

During the correction, the market capitalization and 24-hour trading volume dipped by 1.24% and 4.96% to $6,005,646,749 and $122,815,673, respectively.

SHIB/USD 24-hour market cap, source: Coinmarketcap

The 1-day Shiba Inu price analysis reveals that a downtrend has occurred in the previous hours. A rise in volatility has been experienced as the Bollinger Band indicator has diverged. The upper band is placed at $0.00001177, while the lower band is seen at $0.00001005. Conversely, the MACD indicator shows bearish action, as the histogram shows negative values.

Further, the MACD line (blue) is below the signal line (red), revealing that the bearish momentum is strengthening. This suggests that there may be a potential downward trend in the near future, and investors should monitor the stock closely for any further indications of a bearish market.

SHIB/USD 24-hour price chart, Source: TradingView

On the 4-hour technical analysis, the volatility, as shown by the Bollinger Bands indicator, is decreasing. The upper band is $0.00001047, while the lower band is $0.00001014. This shows that the asset’s price is trading within a narrow range, indicating a period of consolidation. Traders may look for a breakout above the upper band or below the lower band to signal a potential trend reversal or continuation.

The Moving Average Convergence Divergence (MACD) indicator shows potential correction, with the MACD line (blue) moving above the signal line (red) and the histogram heading to positive territory. This move indicates that the bearish momentum may be losing strength, and a possible bullish trend could be forming in the short term, but further analysis is needed to confirm the trend reversal.

SHIB/USD 4-hour price chart, Source: TradingView

While SHIB’s long-term analysis shows a potential bearish run, its short-term correction could be an opportunity for traders to enter the market and take advantage of the possible bullish trend in the near future.

Disclaimer: The views, opinions, and information shared in this price analysis are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be liable for direct or indirect damage or loss.

The post SHIB’s Short-term Correction Offers Potential Bullish Opportunity appeared first on Coin Edition.

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