Shiba Inu (SHIB) Eyes 18% Gain Amid Bullish Sentiment
In A Nutshell
The digital asset Shiba Inu (SHIB) exhibits a bullish market structure on the 12-hour chart, indicating a potential for significant recovery. Despite a bearish internal structure due to recent downward trends, a reclaim of a crucial support zone sparks optimism for an 18% price hike. This analysis delves into various technical indicators and market sentiments that underline the possibility of SHIB’s upward movement.
Technical Indicators and Market Recovery
Recent trading patterns for Shiba Inu show a promising shift in momentum. After a period of decline, SHIB has successfully reestablished its footing above a key support level present since mid-March. This resurgence is largely attributed to an uptick in buying pressure, possibly marking the start of a recovery phase.
Further analysis of the 12-hour chart reveals a bullish market structure. However, SHIB’s inability to overcome resistance at the 50% Fibonacci retracement level has maintained a bearish short-term outlook. The token’s performance against these levels at $0.0000275 and $0.0000295 will be crucial in determining its near-future trajectory.
Capital Inflows and Sentiment Analysis
The Chaikin Money Flow (CMF) indicator, standing above +0.05, signifies robust capital inflows and heightened buying pressure. Additionally, the Relative Strength Index (RSI) on the 12-hour chart, which recently peaked above the neutral 50, suggests growing momentum that could propel SHIB higher.
Market sentiment has also seen a positive turn, with network-wide accumulation signaling strong buyer interest. The 30-day Market Value to Realized Value (MVRV) ratio, being negative for most of April, indicated that holders were at a loss, hinting at a potential buying opportunity. Concurrently, a steady increase in the mean coin age and a positive shift in weighted sentiment underscore a favorable market outlook for SHIB.
Market Cap Considerations and External Factors
While optimistic signs are present, it’s crucial to acknowledge the broader market influences that could impact SHIB’s price movement. Bitcoin’s market dynamics, particularly any sell-off events, may still exert downward pressure on Shiba Inu and other altcoins. Therefore, traders must remain vigilant and adaptable to changing market conditions.
Our Take
The technical and sentiment analysis for Shiba Inu underscores a cautiously optimistic outlook for its near-term price action. The reclaimed support level, combined with positive indicators such as the CMF and RSI, sets a strong foundation for potential growth. However, the bearish bias at critical resistance levels and the influence of broader market trends necessitate a balanced approach from investors. In summary, while an 18% price hike for SHIB appears achievable, it remains contingent upon overcoming existing resistance levels and the absence of adverse market events.
Sources:
– TradingView
– Santiment
