A recent report from market analysis firm CryptoCheck suggests that the price of the Shiba Inu may be on the verge of an explosive rise.
By using the Bollinger Bands strategy along with other key indicators, CryptoCheck believes that SHIB is about to rise. The contraction of the Bollinger Bands is often seen as a precursor to large price movements, providing a basis for this optimistic outlook.
Shiba Inu Bollinger Bands Contraction
CryptoCheck’s analysis focused on the contraction of the Bollinger Bands observed on the 1-day Shiba Inu chart. Bollinger Bands measure market volatility and when they contract, they indicate periods of reduced volatility or consolidation.
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According to data from CryptoCheck, the current contraction is particularly tight, suggesting that significant price volatility could be in the cards in the near future.
When these bands eventually expand, it usually leads to large price movements, either up or down. Based on other supporting indicators, CryptoCheck tends to believe that SHIB has the potential to rise.
SHIB RSI
The relative strength index (RSI) has been at a low level for a long time and shows signs of bottoming out. CryptoCheck pointed out that the RSI recently hit its lowest point this year, indicating that the Shiba Inu is oversold.
This oversold condition usually signals a price reversal as buyers start snapping up assets at low prices, driving demand and ultimately pushing prices higher. According to analysts, the bottoming of the RSI provides strong support for the bullish scenario.
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Shiba Inu V-Shaped Recovery
Another indicator that suggests a possible bullish breakout is the V-shaped recovery spotted by CryptoCheck on the 4-hour chart. Notably, SHIB dropped from $0.00001726 on July 3 to $0.00001266 on July 5. However, it immediately recovered above $0.000017 by July 7.
The rapid decline followed by a quick recovery shows that buyers reacted quickly and bought at lower levels, further corroborating the argument that SHIB has strong support in the current price range. This type of price action is often viewed as a reversal pattern.
Despite these positive signs, CryptoCheck highlights that prices need to break above a key trendline to confirm the bullish outlook.
On the chart, the SHIB price is trading slightly below this trendline, which has been acting as a resistance level for some time. If SHIB is able to close above this line, CryptoCheck suggests that a strong buy signal will be triggered, which could push the price higher.
However, CryptoCheck also acknowledges that the bullish scenario could be invalidated if SHIB fails to break above the trendline and loses higher lows. Therefore, while the signs are positive at the moment, investors should keep an eye on this key level.
Bollinger Bands strategy and other technical tools suggest that history may repeat itself. These indicators further suggest that Shiba Inu may have found a local bottom and the next phase could be another up cycle. At press time, SHIB’s current share price is $0.00001383.
