SHIB Technical Analysis: Price Expected to Rally with Pullbacks

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Touted as the Dogecoin killer, Shiba Inu is another meme cryptocurrency that has been gaining massive popularity in the last few weeks. This heavy demand for SHIB tokens has been influenced in part by many social media influencers on Chinese platforms like WeChat, Weibo, etc. This China-based digital currency blockchain network has been marketed as an experiment in the spontaneous development of decentralized communities. The following SHIB technical analysis predicts price trends for the next few days:

Past Performance

On May 4, 2021, SHIB started trading at $0.000001. On May 10, 2021, SHIB closed at $0.000035. Thus, in the past week, the SHIB price has soared by a whopping 3400%. In the last 24 hours, SHIB has traded between $0.000031-$0.000038

Day-Ahead and TomorrowCurrently, SHIB is trading at $0.000035. There hasn’t been any change from the day’s opening price of $0.000035. Thus, the market seems neutral with equal pressures exerted by the bullish and bearish forces.The MACD and signal lines are negative. Moreover, a bearish crossover by the MACD line over the signal line has occurred. Thus, the overall market momentum is bearish. Hence, the price is expected to decline.Currently, the RSI indicator is at 29% in the ‘oversold’ region. This implies that selling pressures are very high. Hence, the RSI indicator is also giving bearish signals like the MACD indicator. This is a good time for swing traders to go long.The OBV indicator is also falling. Hence, selling pressures are higher than buying pressures. Heavy offloading of the crypto will push its price further down. In short, all three oscillators have pointed towards a price decline.

SHIB Technical AnalysisCurrently, the price is below the first Fibonacci pivot resistance level of $0.000037. It may soon fall below the Fibonacci pivot point of $0.000035. As the overall market momentum is bearish, the price is expected to fall further below the first support level of $0.000032.The price has tested and fallen below the 23.6% FIB retracement level of $0.000036. If by day end, the price retests and breaks out of this level, then probably a bearish trend reversal has occurred. In that case, we can expect the price to continue rising tomorrow as well with intermittent price pullbacks.

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