Shiba rises another 50% Thursday morning: here’s what the charts are signalling

By: Ansh Rathod
Ansh Rathod
Ansh is a tech geek and loves to stay up to date with all the different innovations in the… read more.
on Oct 7, 2021
  • Shiba Inu price rose 50% Thursday on heavy volume.
  • The relative strength index of 95 signals heavily overbought conditions.
  • However, SHIB price could continue rising amid surging hype.

In the last 24 hours, Shiba Inu (SHIB/USD) has risen by 55% on a 700% surge in trading activity. The token had reached a high of $0.00001482 but it has given up some of its gains. Many short-term traders are sitting on impressive profits and are wondering if the brief decline marks the end of a strong rally or if it can rebound to new highs.

Let’s take a look at some of the charts to better understand the coin’s outlook.

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Taking a look at the chart above, we can see the following:

  • After a big fall and a period of consolidation, SHIBA INU has zoomed by over 290% this week alone.
  • It is still 50% away from its all-time high but with the huge buying volumes, this can soon be achieved.
  • Shiba Inu consolidated in a very tight range for over 5 months, and during this time it made a bullish RSI (Relative Strength Index) divergence (Divergence indicates that the current price trend is flagging, which provides insight into whether it’s time to make a move to buy or sell that particular stock).

Is it too late to buy SHIB?

Moving on to the short-term chart above we can observe the following.

  • Shiba price is now moving in a strong upward channel as on Thursday and a short position should be avoided until the lower trendline is broken with high selling volumes.
  • A bearish RSI divergence can be seen, this is indicating that Shiba Inu will test the lower trend line soon.

Finally, the one-day chart above offers some form of confirmation that Shiba is overbought.

  • This week the RSI is extremely high at 95, this is showing that is overbought at a very high level and people can start booking their profits very soon.
  • It has taken rejection from the top and a long wick can now be seen in the daily candle of Thursday which shows that it may give a small pullback soon.

Conclusion

A long entry and buying SHIB now is very risky. Investors should wait for a pullback as the RSI indicates the coin is extremely overbought. Logic dictates a short entry can be taken, however, coins like Shiba are wildly unpredictable and it wouldn’t surprise investors if a new all-time high is reached soon.

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