Shiba Inu (SHIB) surged nearly 14% over the past week, bringing its market capitalization to $14 billion and solidifying its position as the second-largest meme coin after DOGE. While the recent rebound indicates strength, SHIB's RSI suggests a mild bullish phase with potential for further upside if momentum strengthens.
The ADX shows that SHIB is still in an uptrend, but weakening with increasing selling pressure. A potential golden cross could drive SHIB to test resistance levels for further upside. However, losing momentum may lead to a correction towards key support levels.
The Shiba Inu RSI declined after reaching 76.
The Shiba Inu relative strength index (RSI) is currently at 60.8, recovering from the decline on January 5 after peaking at 76 on January 3. The RSI is a momentum indicator that measures the speed and magnitude of price changes, ranging from 0 to 100.
Readings above 70 indicate overbought conditions, typically signaling a potential pullback, while readings below 30 indicate oversold conditions and the possibility of a price rebound.
At the current level, the SHIB RSI indicates a bullish phase but remains below the overbought zone, suggesting there is room for further price appreciation.
This positioning reflects mild buying pressure, suggesting a possible short-term uptick if the RSI rises close to 70. However, if the RSI begins to decline again, it may indicate weakening momentum and the possibility of price consolidation or pullback.
The SHIB DMI shows that the uptrend remains strong.
SHIB's average directional index (ADX) is currently at 28.1, a significant drop from 41.6 two days ago. The ADX measures trend strength on a scale of 0 to 100, with values above 25 indicating a strong trend and values below 20 indicating weak or lack of momentum.
Despite the decrease, the ADX remains above 25, indicating that Shiba Inu is still in an uptrend, although the strength of this trend has diminished.
The directional indicator provides additional insights into SHIB's momentum. The +DI, representing buying pressure, has dropped from 35 three days ago to 18.6, reflecting a decrease in bullish activity. Meanwhile, the -DI, indicating selling pressure, has risen from 6.4 during the same period to 15.1, highlighting an increasing bearish sentiment.
This shift indicates a change in the balance of power, with sellers gaining the upper hand despite the ongoing uptrend. If this trend continues, SHIB's price may face consolidation or even reversal unless buying pressure reasserts dominance.
SHIB price prediction: potential 23% increase.
The Shiba Inu EMA line suggests that a golden cross may be imminent, as the short-term EMA approaches the crossover point above the long-term EMA. This potential bullish signal could reignite buying momentum, allowing SHIB to test the resistance level at $0.0000249.
If it breaks this level, the SHIB price may continue its upward trajectory, targeting $0.000026, possibly $0.0000298, which could represent a 23.6% increase.
However, if the golden cross fails to materialize and the trend reverses (as suggested by the weak DMI), SHIB may face downside risks. The first key support is at $0.000022, and a break below this level could exacerbate selling pressure.
In this scenario, the SHIB price may decline further, testing $0.0000198 or even $0.0000185, marking a significant adjustment in its price.
