Chip bulls dominate, investors adopt ‘buy the dip’ mentality- The SHIB bulls prevail, posting new highs amid the market downturn.
- MACD and RSI indicate bullish momentum and an uptrend.
- Traders urged caution as MFI indicates overbought conditions.
In the early hours of the day, the trading in the Shiba Inu (SHIB) market was dominated by bears, which drove the price as low as $0.00001014, where support was finally set.
Inevitably, the bearish momentum faded, and the SHIB bulls jumped over the hump, pushing the price to a new high of $0.00001105 before encountering resistance. This bullish force remained strong as of press time, causing an increase of 5.71% to $0.00001091 from the previous close.
The market cap rose to $5,986,592,627, and the 24-hour trading volume increased to $297,530,159, thanks to the bullish intervention that gave traders hope for a continued rally. This rally reflects the “buy on the dip” mentality of investors, who view market declines as an opportunity to buy assets at a discount ahead of the inevitable price rebound.
24-hour price chart (Source: CoinMarketCap)
The blue MACD line is moving above its signal line and in the positive area with a value of 0.00000014. This movement indicates that the upward movement in the SHIB market is likely to continue soon. This move is supported by a chart reading of 0.0000008, which indicates a significant shift in momentum to the buy side, with the potential for a price rally soon.
This bullish perspective is supported by a reading of the Relative Strength Index (RSI) at 66.65 above its signal line. This RSI level indicates that the gray market is now in a strong uptrend and is likely to continue rising soon.
However, if the RSI enters the overbought zone, this may indicate that SHIB’s stock price is overvalued and a correction or decline is imminent. As a result, traders may consider taking gains or reducing their exposure to SHIB until the RSI returns to more neutral territory.
SHIB/USD chart (Source: TradingView)
However, the movement of Chaikin Money Flow (CMF), in negative territory with a value of -0.03, casts doubt on the upside of SHIB as it indicates a lack of buying pressure in the market and the possibility of a downtrend.
But since it is approaching the “0” line, the SHIB can still go bullish if the CMF crosses the 0 lines, which indicates an increase in buying pressure and market momentum.
The Money Flow Index (MFI) on the 2-hour price chart now reads 89.28, which indicates that SHIB is overbought and may undergo a price correction soon, especially if the MFI drops below 80. This action urges traders to remain cautious and think. Take profits or place stop-loss orders to reduce the risk of a sharp price drop.
SHIB/USD chart (Source: TradingView)
SHIB’s bullish momentum may be underpinned by a “buy the dip” mentality, but technical indicators are warning traders as they point to a possible price correction.
Disclaimer: The views, opinions and information shared in this price forecast are posted in good faith. Readers should do their research and due diligence. Any action taken by the reader is at their own risk. Coin Edition and its affiliates will not be liable for any direct or indirect damage or loss.
SHIB Bulls dominance emerges, investors embrace ‘Buy the Dip’ mentality for the first time coin issuance.
