To provide analysis on SHIB/USDT using Bollinger Bands and Moving Averages (MA) indicators.
General technical analysis
1. Bollinger Bands Indicator:
The chart shows that the price is moving above the upper band of the Bollinger Band, indicating a possible overbought situation. When the price goes above the upper band, this may be a sign of strong buying pressure, but it may be a prelude to an upcoming correction if the price cannot continue rising.
2. Moving Averages (MA):
The MA(5) moving average indicates strong bullish momentum as the price crosses above the longer moving averages (such as the MA(10)). This cross is considered a positive signal in the short term, as it shows that buyers are currently in control of the market.
If the price continues to trade above these averages, it may keep the trend up.
3. Volume:
The high volume in recent days shows growing interest in the currency. This volume support is a positive sign that the current trend will continue, but if the volume suddenly drops, it may indicate a decline in momentum and a potential corrective move.
Short-term forecasts
Based on current indicators, there is a possibility of further upside if the price breaks the resistance level at 0.00002795 with a strong volume level. However, if the price faces strong resistance at this level without sufficient volume support, the price may witness a pullback to retest the support levels at 0.00002481.
Trading Tip:
1. Bullish strategy: If the price manages to break the resistance and continue to rise, a buy trade can be opened with a stop loss placed below the moving average MA(10) to protect the capital.
2. Pullback Strategy: If the price fails to break the resistance and pulls back down, you can wait until the price reaches the mentioned support level. This level may be considered a new entry point if strong buy signals appear.
Note: It is preferable to follow the news and any developments that may affect the movement of the currency, as digital currencies are sensitive to fluctuations resulting from external events and news.
