Disclaimer: The results of the following analysis are the sole opinions of the authors and should not be used as investment advice.
Shiba Inu seems to have already seen trading volume in the cryptocurrency community. SHIB climbed into the top 15 cryptocurrencies in October after posting an astonishing 550% return on investment in just 30 days. On the chart, SHIB continued to rise after breaking the bullish pennant last week.
With all RSI, MACD and awesome oscillators eager to beat their previous highs, the SHIB appears ready to expand to the 138.2% Fibonacci level. However, there could be a retracement if an investor removes the SHIB before it marks 0.00005343 USD.
Shiba Inu daily chart
Source: SHIB/USD, TradingView
Shiba Inu continued higher after forming a bullish pennant in the first week of October. Interestingly, the bearish crossover of the overbought RSI and MACD did not offset the upward breakthrough in the pattern.
Now with four consecutive green candlesticks on the SHIB daily chart, the market sentiment appears to be very favorable to buyers. Here, SHIB needs to move 11.5% higher to mark the 138.2% Fibonacci level, after which the 161.8% ($0.00006169) and 200% ($0.00007507) Fibonacci levels are targeted.
If SHIB’s RSI enters further overbought territory but the index can break past its previous highs, we can expect further gains. The same goes for MACD and Awesome Oscillator.
If sellers react to the double top of these indicators, we expect SHIB to drop below the 138.2% Fibonacci level. SHIB’s previous highs at $0.0000400 will be key support during the correction period.
In conclusion
The exchange’s strong trading volume, along with bullish readings from the RSI, MACD, and the awesome oscillator, could allow SHIB to test the 138.2% Fibonacci level in the next few days.
However, the above areas offer lucrative take profits for investors. If the indicator weakens after a double top is established, I expect SHIB to move towards $0.0000400 before starting the next bullish cycle.
Information source: Compiled with 0x information in AMBCRYPTO. The copyright belongs to the author, and unauthorized reproduction is prohibited.
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