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The popular meme-inspired cryptocurrency Shiba Inu (SHIB) finds itself in a dangerous position as it pulls on the Bollinger Bands on the weekly time frame of the price chart.
If you are not familiar with them, think of the Bollinger Bands as a market stress indicator. They track how much the price moves around a moving average, tightening when things are calm and widening when markets get wild. Developed by John Bollinger, this tool has three parts: two outer curves that show price divergence and a middle line that represents the average.
Tomiwabold OlajideThe space between the curves creates a range that helps traders assess whether an asset is nearing an overbought or oversold condition. It is a way to visualize volatility and identify potential turning points in the market.
After a tumultuous last few days, the price of SHIB lost key support at $0.00002, set a low for the week at $0.0000173 and bounced back to $0.00001884, 8% above yesterday's low. However, first, the immediate return above $0.00002 failed to materialize, and this signals limited buying power and ambition.
Second, the price of the Shiba Inu token failed to rise above the mid-curve represented by the 20-day moving average on the weekly price chart, and that is what maintains a bearish bias for SHIB right now.
Scenario for Shiba Inu (SHIB) price
The fact that the price of SHIB remains below the median of the major indicators makes the possibility of revisiting the lower band, which currently extends to $0.00001251, more likely than a rise to the upper band at $0.0000312.
Arman ShirinyanIf this is the main scenario, it means that the Shiba Inu token is on the verge of a 33% crash from current levels. It may not be sudden, as the weekly time frame implies more extended time movement. However, it is likely to happen if nothing changes for SHIB in the near future.
The $0.00001251 level currently serves as the ultimate magnet for the popular meme cryptocurrency.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Yuri Molchan
Tomiwabold Olajide
Dan Burgin
Vladislav Sopov