Shiba Inu Bollinger Bands Indicate Downtrend is Weakening, with Prices Eyeing $0.00006
The post Shiba Inu Bollinger Bands Indicate Downtrend is Weakening, with Prices Eyeing $0.00006 appeared on BitcoinEthereumNews.com.
The Bollinger Bands on the daily Shiba Inu chart suggest the downtrend might be weakening, with analysts setting breakout targets at $0.00006. Shiba Inu now trades at a critical juncture following the persistent downtrend that plagued it from May 4. Recall that earlier this month, SHIB sought to recover from the price decline recorded throughout April, which led to a 27.16% monthly loss, the highest since the Terra implosion of May 2022. The recovery efforts from earlier this month faced a hiccup on May 4, resulting in another round of losses. However, this renewed downward push came to a halt on May 13 after Shiba Inu retested the lower Bollinger Band upon the crash to $0.00002156. Bollinger Bands Suggest Weakening Downtrend Now, the Bollinger Bands suggest SHIB might be gearing up to register a breakout that would eventually help eliminate this sustained downtrend. For context, traders leverage the Bollinger Bands to identify overbought or oversold regions, which could be useful in detecting an imminent trend reversal. When a cryptocurrency’s price slumps to retest or break below the lower band during a downtrend, this typically suggests that the asset might be breaking into oversold territories. SHIB retested this lower trendline during the price collapse on May 13, signaling that the downtrend is weakening. Shiba Inu Daily Bollinger Bands Interestingly, the retest preceded an impressive recovery push from Shiba Inu, buoyed by Bitcoin’s (BTC) rebound. However, SHIB faced resistance when it touched the upper trendline at a high of $0.00002588 yesterday. Shiba Inu requires a further push from the bulls to retain this upward momentum and eventually breach the upper trendline. Shiba Inu Sees Reduced Volatility A closer look at the daily chart shows that the Bollinger Bands are currently contracting. Such a significant squeeze indicates reduced volatility, a pattern that suggests…
Filed under: News - @ May 17, 2024 12:16 pm