Analyst Unveils Impending Upsurge as Shiba Inu Bollinger Bands Contracts
Based on the analysis of the Bollinger Bands strategy and other key indicators, it is believed that SHIB is showing strong potential for an imminent upsurge. The contraction of the Bollinger Bands, which is often considered a precursor to significant price movements, forms the basis for this positive outlook.
Overview of the Analysis
As per CryptoCheck’s analysis majorly dwells on the Bollinger Bands contraction observed on the 1-day Shiba Inu chart. The tightening of the Bollinger Bands signifies a period of reduced volatility or consolidation. The current contraction is particularly tight, indicating a potential significant price movement in the near future, as evidenced by historical patterns.
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In addition to this, the Relative Strength Index (RSI) has been at a low point for an extended period and is showing signs of bottoming out, suggesting that Shiba Inu is oversold. This often precedes a price reversal and adds strong support to the bullish case.
Furthermore, a V-shaped recovery pattern was identified in the 4-hour chart, indicating a potential bullish breakout. Despite these positive indicators, it is crucial to note that the price must break above a critical trendline to confirm the bullish outlook.
The SHIB price is currently hovering just below this trendline, which has acted as a resistance level for some time. A break above this line could trigger a strong buy signal, potentially sending the price much higher. However, failure to break above the trendline and sustain higher lows could invalidate the bullish scenario.
In conclusion, the Bollinger Bands strategy and other technical tools point to the potential for a significant price movement, potentially signalling the start of another upward cycle for Shiba Inu. As of the time of writing, SHIB trades at $0.00001383, and investors should closely monitor the key level for further developments.
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Dr. Olajide Samuel juggles the demands of medical studies with a passion for cryptocurrency. A seasoned blogger, Olajide shares his vast global knowledge of the crypto space, offering insights to enthusiasts. Despite his busy schedule, his commitment to crypto remains strong, and he actively seeks ways to contribute to its future.
