Shiba Inu on its way back to support, demand could see another leg upward
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice
The recent bullish momentum behind Bitcoin has been magnified for Shiba Inu, which has picked itself up from a support level and gained around 60% within a week, before facing selling pressure. At press time, Shiba Inu had a $17.2 billion market cap, which was just $3 billion lower than Dogecoin, making these two the most popular meme cryptocurrencies. It appeared likely that SHIB’s market structure had been flipped to bullish, however this could take a few weeks to confirm.
Source: SHIB/USDT on TradingView
SHIB found support at the $0.02045 (SHIB prices are multiplied by a factor of 1000 to reduce decimal places and improve clarity) level and has bounced strongly since then. The $0.024 area has been a place where SHIB had found demand in mid-October and moved upward from.
This area offered some resistance in the past two weeks, but sellers were exhausted and bulls soared past this area, reaching as high as the $0.033 level of resistance. This level was slightly higher than the previous lower high in SHIB’s downtrend, which showed that bulls had sufficient strength to push prices that far north. Whether they can follow through is a question that remains to be answered.
For more aggressive buys, the $0.027 and $0.025 levels are places where the price was likely to react positively. The $0.024 area and the 55-SMA (green) might also see demand step in for SHIB.
Source: SHIB/USDT on TradingView
The RSI on the 12-hour timeframe has skyrocketed in the past two weeks and reached into the overbought area, something that hadn’t been done since October last year. This showed strong momentum had been seen,
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