SHIB Bulls Dominate, Investors Embrace ‘Buy the Dip’ Mentality
In the early hours of today, bears dominated trading in the Shiba Inu (SHIB) market, driving the price down to a low of $0.00001014, where support was eventually set.
Inevitably, the bearish momentum died down, and SHIB bulls jumped over the hump, driving the price to a new high of $0.00001105 before facing resistance. This bullish power held strong until press time, causing a 5.71% increase to $0.00001091 from the previous close.
Market capitalization increased to $5,986,592,627, and 24-hour trading volume increased to $297,530,159, thanks to the bullish intervention that gave traders hope of a sustained bull rally. This rise reflects the “buy the dip” mentality of investors, who view market declines as an opportunity to purchase assets at a discount before the inevitable price recovery.
SHIB/USD 24-hour price chart (source: CoinMarketCap)
The MACD blue line moves above its signal line and into the positive area with a value of 0.00000014. This motion indicates that the bullish movement in the SHIB market will likely continue soon. This movement is supported by a histogram reading of 0.0000008, marking a significant momentum shift to the buying side, with the possibility of more price rises soon.
This bullish perspective is supported by the Relative Strength Index (RSI) reading of 66.65, above its signal line. This RSI level indicates that the SHIB market is now in a strong uptrend and is likely to continue rising soon.
Nevertheless, if the RSI enters the overbought zone, it may suggest that SHIB is getting overpriced and that a correction or decline is impending. As a result, traders may consider taking gains or decreasing their exposure to SHIB until the RSI returns to a more neutral zone.
SHIB/USD chart (Source: TradingView)
However, the Chaikin Money Flow (CMF) movement, in the negative area with a value of -0.03, casts doubt on the SHIB bullishness since it indicates a lack of purchasing pressure in the market and the probability of a bearish trend.
But, since it is approaching the “0” line, the SHIB still can become bullish if the CMF crosses over the 0 lines, signaling an increase in buying pressure and market momentum.
The Money Flow Index (MFI) on the 2-hour price chart is now reading 89.28, indicating that SHIB is overbought and may undergo a price correction soon, mainly if the MFI falls below 80. This action urges traders to continue cautiously and consider taking profits or placing stop-loss orders to mitigate risk in a precipitous price decrease.
SHIB/USD chart (Source: TradingView)
SHIB’s bullish momentum may be backed by a “buy the dip” mentality, but technical indicators caution traders since they suggest a potential price correction.
Disclaimer: The views, opinions, and information shared in this price prediction are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be liable for direct or indirect damage or loss.
