Shiba Inu is a cryptocurrency launched to the public in August 2020 as a fork of the Ethereum blockchain. As a decentralized cryptocurrency, a peer-to-peer digital asset designed for storage value and a means of exchange. Shiba Inu rapidly gained popularity due to its association with the Dogecoin cryptocurrency, based on the Shiba Inu breed of dog.
Like Dogecoin, Shiba Inu has a strong online community of supporters who use cryptocurrency for tipping content creators and participating in online forums. It is likely that Shiba Inu investors are individuals interested in cryptocurrencies and are attracted to the fun, lighthearted nature of the Shiba Inu community. However, Shiba Inu and other meme-based cryptocurrencies are highly volatile and risky investments, and it is important to carefully consider the risks before investing.
At present, the SHIB token is worth $4,515,616,420, even in the highly negative cryptocurrency markets. From its peak value, SHIB has recently touched the low of $0.00000792. Placed at the 16th spot as per its market capitalization, its closest competitor, Dogecoin, ranks at the 8th position with a higher valuation of above $9 billion.
The positive breakout above the 100 EMA curve was last seen in November 2022 when the token created a month high, breaching the month-on-month negative streak. Currently, trading value showcases a huge difference from the 100 EMA curve, highlighting a negative stance in the past three months. Read our SHIB coin price prediction to know if it can surpass 100 EMA or not.
Shiba Inu has turned multiple people into millionaires during its bull rally of 2021, but the buying action has since then been mostly absent. While influencers have attempted their best to spike the token but its high supply volume and market capitalization do create hindrances in news-based rallies. RSI, at one point in December 2022, touched the oversold zones, but since then, the token has made a positive recovery in January 2023.
On close inspection, sudden price rallies have been witnessed, but the same has quickly turned into a profit booking on the same day. Overall sentiment lacks the buying confidence that the token can take off higher resistance zones even if supported by fresh rallies.
As RSI has taken a decent jump, the MACD indicator has also begun highlighting a positive turnaround, but the same is absent for the candlestick pattern, which shows only a marginal jump from its December 2022 lows. The major resistance for SHIB, apart from the 100 EMA curve, is 0.00001044.
On weekly charts, the SHIB token is trading close to June 2022 declined value. Hence, investing without a proper breakout pattern could lead to further traps in a declining market.
Source: https://www.cryptonewsz.com/shiba-inu-overcomes-the-dip-and-attempts-a-breakout/