Shiba Inu: SHIB Looking good let analysis for the near future
Listen to this article
Disclaimer: The following analysis is the author's personal opinion and should not be considered investment advice.
Shiba Inu sees a pattern breakout, can buyers continue to profit?
Public interest in the crypto meme has lifted buyer confidence over the past day.
Shiba Inu [SHIB] saw buying pressure after breaking out of a bullish pennant structure in October. 28. This volatile bullish breakout pushes the meme-token into a high liquidity area. Near the point of control (POC, red) in the $0.0124 area. (In short, multiply the SHIB price from now on by 1000).
The recent breakout of the bullish pattern paved the way for impressive daily gains on its chart. Any reversal at $0.013 could help the sellers ease further buying pressure.
At press time, SHIB is trading at $0.01291, up 7.92% over the past 24 hours.
SHIBA Price chart analysis
The break of the coin meme above the $0.01015 mark confirmed the end of the compression phase as buyers ramped up the volatility break above the red 20 EMA), the green 50 EMA in the blue and the 200 EMA is green.
The recent rally in SHIB marks a bullish sign on the 4-hour timeframe. After firmly rejecting lower prices near the 20 EMA, there was a breakout of the expected pattern, adding to the buying pressure.
With the 20/50/200 EMA looking north behind the golden cross, buyers can continue to control the short-term trend. A bounce from the $0.014 area can stop the green candlestick sequence. In this case, $0.01232 could be the first major support tested by sellers.
An immediate or final close above $0.0132 could provide short-term upside for the coin. In this case, the SHIB could make a pullback and aim for a retest of the $0.0142 top.
Additionally, the Relative Strength Index (RSI) has recovered from the 50 mark, showing strong buying. Also, the recent green candle shows high volume and indicates underlying bullish sentiment. Buyers should look for a strong reversal in the RSI to gauge the possibility of a bullish trend.
SHIB's open interest and price increased
An analysis of SHIB's open futures aggregate shows an impressive 14% increase in open interest over the past 24 hours. As a result, the price action has increased by more than 7% over the same period. This reading implies a short-term bullish signal.
If buyers take advantage of this, any break of the immediate resistance range could send the coin higher.
Additionally, alt has a 30-day correlation with Bitcoin of 84%. Therefore, tracking Bitcoin's movement through overall market sentiment may be essential to identify any bullish invalidation.
Nov 02, 2022