Shiba Inu (SHIB) Market Overview

Shiba Inu (SHIB) has been trading well below $0.000020 for the past month, experiencing a 30% decline in February. Its market cap now stands at $8.25 billion. Despite this downturn, SHIB’s technical indicators are showing mixed signals, suggesting the possibility of a trend reversal.

RSI Recovery

The RSI has recently recovered from oversold levels, and BBTrend has turned positive, indicating a potential shift in buying interest. However, its EMA lines remain in a bearish setup, showing that SHIB is still facing challenges in establishing a strong uptrend.

SHIB RSI Is Now Neutral After Becoming Oversold

SHIB’s RSI is currently at 34.5, after dipping to 21.6 a few hours ago, marking a sharp decline from 56.5 just two days ago. The Relative Strength Index (RSI) measures the speed and change of price movements, helping traders identify overbought or oversold conditions. It ranges from 0 to 100, with values above 70 indicating overbought conditions and below 30 suggesting oversold levels. SHIB’s recent drop into oversold territory marked the first time this occurred since February 3, indicating intense selling pressure.

With RSI now at 34.5, SHIB is recovering from oversold conditions but remains fragile. This level suggests that selling momentum is slowing, potentially setting the stage for a short-term rebound. However, the current RSI is still relatively low, indicating persistent bearish sentiment. If RSI rises above 40, it could signal renewed buying interest; conversely, a fall below 30 could lead to more selling pressure.

Positive BBTrend, But Weak Momentum

Shiba Inu’s BBTrend turned positive, currently sitting at 5 after a rise from -1.55 just a day ago. BBTrend, derived from Bollinger Bands, measures the strength and direction of a trend. Positive values indicate bullish momentum, while negative values signal bearish pressure.

SHIB’s BBTrend had been negative for six consecutive days, reflecting strong selling pressure. With BBTrend now at 5, Shiba Inu shows signs of renewed buying interest. However, this positive shift is still at relatively low levels compared to previous rallies. If BBTrend continues to rise, it would reinforce bullish sentiment. Otherwise, a decline could mean fading buying momentum and potential price pullback.

Potential 42% Rally with Golden Cross

SHIB recently dropped below $0.000014, reflecting ongoing bearish trends. Its EMA lines indicate persistent selling pressure. If this trend continues, SHIB could test the support at $0.0000116. However, if it reverses, it could test resistance at $0.0000146; breaking this level may trigger a rally toward $0.000017, and potentially $0.0000196. Successful bullish momentum could see SHIB exceed $0.000020 for the first time since late January.

A strong buying momentum would require short-term EMAs to cross above the long-term ones to confirm a trend reversal. Until then, the bearish EMA setup suggests ongoing downward pressure.