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SHIB traders rely on a variety of indicators and technical analysis to determine future price predictions. While following all indicators is necessary to assess an accurate price forecast that matches the market trend, there are more valuable fundamental indicators. Knowing the Shiba Inu support and resistance levels gives traders a clear view of the supply and demand situation and also helps them identify reversals in trends.

In addition, chart patterns are widely used by traders to form trend lines that help predict the next candlestick movement.

Various indicators such as RSI, moving averages and MACD can be used to determine the direction of the long-term trend and attempt to predict future price movement.

Price action is in a moderate sideways trend, the price fell below the $0.00002312 horizontal after previously moving higher. These divergences are considered signs of a moderate trend. Despite this decline, SHIB price is still 202.21% positive since the beginning of the year.

RSI

The Relative Strength Index (RSI) indicator provides additional insight into market momentum by measuring the magnitude of Shiba Inu price movements to determine whether they are overbought or undervalued. Market traders use the RSI as a momentum indicator to identify overbought or oversold conditions, and to decide whether to buy or sell assets. Readings above 50 and an upward trend indicate that bulls still have strength, while readings below 50 indicate the opposite.

According to the RSI, on the 1-week candle timeframe, Shiba Inu is currently trending bullish with the actual RSI reading at 56.04. The 50 line could provide support if the indicator retraces to it.

Moving averages

Moving averages are an important analytical tool that provides traders with a bigger picture of what is happening on the charts by calculating the average closing price of Shiba Inu over a specified period of time. The relationship between short-term and medium-term moving averages is crucial in determining the direction of the trend. When the short-term moving average moves above the long-term average, it indicates that the trend is gradually turning bullish.

On the weekly Simple Moving Average SMA time frame, Shiba Inu price is in a moderate trend as the 50-period moving average has crossed above the 200-period moving average and the price is trading above both of them.

On the other hand, the trend is neutral if the 50-day moving average crosses above the 200-day moving average but the price trades below both (and vice versa).

MACD (Moving Convergence/Divergence) Indicator

Finally, the MACD uses the simple moving average (SMA) and the exponential moving average (EMA) to more accurately predict trend direction. Similar to simple moving averages, the relationship between these two values ​​is useful in determining trend direction.

For all these indicators, the weekly time frame is used to determine the long-term trend, the daily time frame is used for the medium-term trend, while the six-hour time frame is used for the short-term trend.

According to MACD, in 1-week candle timeframe, Shiba Inu price is currently in bullish momentum as MACD signal line moved above 50 period and has been positive for 50 period.

What affects the price of Shiba Inu?

There are a number of variables in the cryptocurrency market that can affect the price of Shiba Inu to go up or down. The main force behind the market value of Shiba Inu assets is supply and demand. Whether the demand for more SHIB increases or decreases largely depends on the growing adoption.

Moreover, important events such as protocol updates or hard forks can play a big role in the price of Shiba Inu.

Another important factor to consider is whale activity. Large holders of Shiba Inu can have a significant impact on the price of the coin as a large sell order can cause the price to drop significantly. Additionally, never underestimate the power of large institutions and political organizations to rely on the value of Shiba Inu.

summary

It is important to note that some cryptocurrency price predictions may show contradictions. There is no clear-cut way to determine the future value of any cryptocurrency. This is due to the many factors involved in cryptocurrency price predictions. It is not uncommon for cryptocurrency prices to change dramatically based on a single announcement at any given time. The entire market can affect the movement of a single coin as well as any updates to the project’s technology. You should always do your own research before investing in any cryptocurrency.