Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
Recent bullish momentum behind Bitcoin has increased for Shiba Inu, which has recovered from a support level and gained around 60% in a week before facing selling pressure. At the time of writing, Shiba Inu had a market cap of $17.2 billion, which was just $3 billion lower than Dogecoin, making these two the most popular meme cryptocurrencies. It seemed likely that SHIB’s market structure had flipped to bullish, but this could take several weeks to confirm.
Source: SHIB/USDT on TradingView
SHIB found support at the $0.02045 level (SHIB prices are multiplied by a factor of 1000 to shrink the decimals and improve clarity) and have been rallying since then. The $0.024 area was where SHIB found demand in mid-October and moved up from there.
This area has seen some resistance for the past two weeks, but sellers were exhausted and bulls flew past this area reaching a resistance level of $0.033. This level was slightly higher than the previous lower high in SHIB’s downtrend, which showed that bulls had enough strength to push prices that far north. Whether they can continue is a question that remains to be answered.
For more aggressive buying, the $0.027 and $0.025 levels are places where the price would likely react positively. The $0.024 area and the 55-SMA (green) may also see an increase in demand for SHIB.
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Source: SHIB/USDT on TradingView
The RSI on the 12-hour time frame has skyrocketed over the past two weeks, reaching overbought territory, something it hadn’t happened since October last year. This indicated that strong momentum had been observed and further upside could be seen in the coming weeks. The price was above the 55 SMA (green) and 21 SMA (orange), although the moving averages themselves had not yet formed a bullish crossover.
The Awesome Oscillator rose above the highs it registered in late December, which showed that the bullish strength was significant. The AO also highlighted how the trend has been strongly bearish in recent months.
The OBV also crossed the late December highs – significant demand fueled SHIB’s recent rally.
Inference
Strong demand and bullish momentum have prompted SHIB to gain more than 60% in the past week before the test of $0.033 as resistance. The pullback for SHIB may react positively at the USD 0.029, USD 0.027 or USD 0.024 levels. Flipping the $0.033 level to support could encourage conservative investors that the market bias was bullish again.
This post Shiba Inu on the way back to support, the question could see another leg up
was published first on https://ambcrypto.com/shiba-inu-on-its-way-back-to-support-demand-could-see-another-leg-upward/
