- Shiba Inu rallied by 31%, together with other altcoins in the market.
- The price of SHIB now finds itself at a resistance level of $0.0000104.
- Technical analysis suggests that the price of SHIB may correct as a bearish divergence form on the chart.
Together with several other altcoins, Shiba Inu (SHIB) posted a decent gain for the first time in a while as its price rallied slightly. However, it seems the rally has ended around a resistance level, which ultimately could lead to a retracement for SHIB.
On June 21, SHIB’s price rallied by 31%. Other altcoins, such as Synthetix (SNX), Storj (STORJ), and Dogecoin (DOGE), to name a few, also rallied during this period.
Furthermore, the Relative Strength Index (RSI) SHIB produced higher lows while the price produced lower lows between May 12 and June 13 — creating a bullish divergence. This is what saw the price of SHIB rally the way that it did. However, this bullish move now faces a threat from two directions.
Firstly, SHIB’s price is struggling to rise above the $0.0000104 hurdle. A rejection at this level could ignite a 17% descent to around $0.0000095. Meanwhile, SHIB also produced lower highs between May 30 and June 21 and the RSI created higher highs.
This setup with the RSI and SHIB’s price is a bearish divergence, which further strengthens the argument that there may be a 17% downwards move and a retracement in general. Therefore, investors need to pay close attention to what SHIB’s price does today.
4-hour chart for SHIB/USDT (Source: TradingView)
Although SHIB’s situation looks bullish at the moment, investors need to pay close attention to the RSI on the 4-hour chart. A bearish divergence has appeared on the indicator, which suggests that there may be a correction. Should SHIB’s price close today’s daily candlestick above the $0.0000104 level, the price of SHIB could further rally by 33% to target $0.0000139.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CQ. No information in this article should be interpreted as investment advice. CQ encourages all users to do their own research before investing in cryptocurrencies.