Shiba Inu (SHIB) has been falling since early May after a failed recovery attempt. The price drop began on May 4, following a steep decline in April, the largest since the Terra collapse in May 2022. Recent technical indicators now suggest a potential reversal.
On May 13, SHIB’s price retested the lower Bollinger Band, a signal often indicating oversold conditions in a downtrend. This could suggest a potential turnaround in market direction.
SHIB Shows Signs of Bullish Momentum
The Bollinger Bands on the SHIB chart are narrowing, indicating reduced volatility. This contraction often precedes significant price movements, whether upward or downward. Coupled with increased whale activity, this has sparked optimism for a potential surge in SHIB.
Adding to the bullish sentiment is the identification of a triangle pattern by analysts on the daily SHIB chart. This pattern suggests an impending breakout and the possibility of a substantial upward movement.
Currently, SHIB is trading at $0.00002506, reflecting a 2.35% increase in the last 24 hours. Breaking through the $0.000025 resistance zone sets the stage for another upward attempt.
Analysts have varied expectations for SHIB’s price target. Some foresee a rise to $0.00005, while market analyst SHIB Knight anticipates a potential reversal pushing SHIB to $0.00006, marking a potential increase of more than 146% from recent levels.
Shiba Inu (SHIB) Shows Decreased Volatility and Potential for Price Surge
Recent data from Santiment, a crypto analytics platform, indicates a significant decrease in Shiba Inu’s volatility this week. On May 12, SHIB’s volatility dropped to its lowest point in three months, measuring 0.003097.
This level was last observed in late February, just before SHIB experienced a massive surge of nearly 400%, pushing its price above $0.00004 by March 5. Although there has been a slight uptick in volatility recently, it remains below the average daily levels.
Technical indicators and analyst sentiment are aligning to suggest a potential reversal in SHIB’s trend. The contraction of the Bollinger Bands, along with the declining volatility and the breakout of a chart pattern, all indicate the possibility of an upcoming price increase.
Shytoshi Kusama, the lead developer of Shiba Inu, recently shared an optimistic message, further fueling positivity within the SHIB community. These bullish signals have heightened excitement and optimism about SHIB’s future price movements.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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