The explosive rally Shiba Inu is easily the hottest story in the crypto space this week, so we’re gonna take a quick look at the technicals to see if there are any points of opportunities or risks to possibly make moves on.
Will the Massive SHIB Rally Continue?
Shiba Inu (SHIB) is the talk of the town this week thanks to its mammoth rally from roughly 0.000008 to a high of around .000035 in yesterday’s trading session, equating to a staggering 325% move in just three days. The catalyst being attributed to the rally is this tweet from Elon Musk:
Floki Frunkpuppy pic.twitter.com/xAr8T0Jfdf
— Elon Musk (@elonmusk) October 4, 2021
Obviously, fundamentals are playing a huge role in the movie (not!), but is it enough to keep the rally going? We’ll have to wait and see, but looking at the one-hour chart above of SHIB/USD, we got a pretty clear technical structure that both the bulls and the bears can plan out their next move on.
For the bulls who are either looking to play a pure momentum move and/or the fact, there is actually an ecosystem being built around SHIB (it is the native token for the ShibaSwap DEX, can be used to earn rewards, and buy NFTs), you may want to wait for a pullback as the big red candles on the chart above may draw in some profit takers.
In that scenario, there are potential areas to watch if retested, mainly the minor levels of interest at 0.00002 and 0.000025 that acted as both short-term support and resistance. These levels also line up with the rising ‘lows’ pattern draw on the chart above, which may also be an attractive buy area for technical players.
Bullish reversal patterns in that area and Stochastic showing oversold conditions for SHIBUSD is the technical signal to watch out for before considering a long position.
For the bears out there who think this move is overdone or want to ignore the fact, SHIB went from meme coin to a top 15 crypto asset in the world, shorting at current levels with a stop just above yesterday’s highs makes sense for aggressive players. But for more conservative types, you may want to wait and see if the .0000250 level / rising ‘lows’ pattern can be broken. That may be the trigger for a dump, but consider that the reward may be limited with the 0.00002 area of interest not too far away to potentially draw in buyers.
What do you all think? Is SHIB a buy? Will SHIB/USD dump from here or will buyers be ready to buy the dip? Let me know in the comments section below!