Chart by TradingView
Key Support level: $0.000042
Key Resistance level: $0.000062
The Shiba Inu (SHIB) rally continues with another impressive push of over 20% today.
SHIB has defied all expectations and has doubled yet again in about a week’s time. This shows that the appeal of meme coins surpasses many fundamental arguments in the altcoin market. The Shiba Inu chart is clear, price is going up in a parabolic fashion with possible resistance at the next Fibonacci level as indicated by the chart. On the other hand, the area around $0.000042 appears to be a good candidate for support.
Whenever coins are in a parabolic move, the support and resistance lines can change very rapidly, particularly when coins like SHIB are in price discovery. Market forces have to find a new balance to define the support and resistance levels which can take several attempts, meaning that high volatility is to be expected.
Trading Volume: Volume exploded on this rally, but now appears to fade. Hence, it’s important to keep a close eye on the parabolic trendline, as once broken, Shiba could enter a correction.
RSI: The RSI is in the overbought area and continues to go up. This shows bulls have full control of the market.
MACD: MACD is very bullish, however, it’s important to watch for any sign of weakness on the 4-hour timeframe. The histogram is making lower highs on this timeframe. If the price breaks below the parabolic trendline, then a pullback may take place.
Bullish. This bias should be revisited only if Shiba breaks below the support at $0.000042.
The break from the descending triangle has unleashed a considerable rally. There are some early signs that bulls may need a break before resuming the push higher (see volume). However, the current parabolic trendline has to fall to confirm this possibility. Until then there is very little holding Shiba back from achieving higher levels. A reasonable target at this time appears at $0.000062.
