Shiba Inu rushes up despite a slight overheating of the market
Shiba Inu risks returning to its previous values due to the October price explosion, which has brought the token closer to depletion.
Dog tokens won the hearts of many members of the cryptocurrency community for a reason, and the Shiba Inu dogs were firmly entrenched in all news feeds of social networks and Elon Musk's Twitter account. In the meantime, Shiba Inu is confidently approaching the top ten of CoinMarketCap, analysts have concerns about the "overheating" of this meme coin.
The value of the RSI indicator on the chart below can fluctuate in the range from 0 to 100, while a result under 30 means the token is oversold, and a value beyond 70, on the contrary, means overbought. So, in early October, SHIB overcame the mark of 70, and in the next three days, it consolidated beyond the level of 94.
In theory, such values should lead to a correction of the token's worth. However, meme coin continued to grow steadily throughout the month, eventually “gifting” its investors a return of around 574%, growing to a 5-month high of $0.00004860, and hitting a new ATH.
On the other side, the RSI Shiba Inu fell, forming a significant discrepancy among the SHIB value and momentum, which reflects the main infirmity of the long uptrend, significantly increasing the likelihood of the coin rolling back to its previous values in the coming days. Three price candles on the SHIB chart at the close indicate a series of higher highs. This coincides with a decline in trading volume for 3 days in a line, which again brings us back to the underlying weakness of the current uptrend.
No, this doesn't mean that the decline will occur immediately and the value will enter the correction process. In addition, based on the indicators on the charts, the bulls see the rate of $0.00005222 as their subsequent upside objective for the SHIB. If the SHIB falls, it can be “picked up” by the support level at $0.00004000.
We hope that the dog token will be able to avoid unnecessary jumps and further delight those who believe in the power of the Shiba Inu army!
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