Shiba Inu (SHIB) is on the verge of being oversold, a signal from the Bollinger Bands.
Shiba Inu (SHIB), the popular meme-inspired cryptocurrency, is currently in a downtrend and trading at $0.0000208, according to Bollinger Bands, quite close to the 'oversold' zone — this is a critical moment that traders need to pay attention to.
The Bollinger Bands display three lines: the upper band, the middle band, and the lower band. The middle band is based on the 20-day moving average of the security, while the upper and lower bands are two standard deviations away from this average. SHIB is currently approaching the lower band, down 3.58% from the current price.
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When an asset approaches the lower band, it can be a sign that the market may be oversold. For SHIB, this indicates that it may have dropped too far, too fast. Some view this as a reason to be cautious, as it may mean that people are feeling negative about the market.
But this oversold condition could also be a sign that things are about to change. Therefore, the market may soon recover as long as buyers step in.
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If the Shiba Inu token can find support at this level and people start buying more, the next important resistance point to watch is $0.0000223, where the 20-day moving average currently lies. If SHIB can also break above the average, the next level to watch is the upper band at $0.0000246.
Although things seem a bit bleak for SHIB right now, there is still a chance that we could see some good news. Entering the oversold zone could be an opportunity for the market to recover, so traders should be ready to act.