Popular meme coin Shiba Inu (SHIB) price became the top-earning cryptocurrency on February 4 with its intraday attack. But one analyst says SHIB’s technical indicators are giving a critical signal.
Shiba Inu (SHIB) shares ‘winning’ tweet
The official Shiba Inu (SHIB) Twitter account posted a ‘win-win’ tweet after the price of SHIB rose nearly 30% on the day on Feb. The tweet, which showed the Shiba Inu mascot holding and displaying a trophy, sparked excitement in the Shiba Inu community.
— Shib (@Shibtoken) February 4, 2023
As you follow on Kriptokoin.com, SHIB became the biggest winner on February 4 as its price rose to its intraday high of $0.00001590. While some of the gains have eased, SHIB is still at $0.00001446, up 20.42% on a weekly basis. The token is up over 20% in the past seven days as it sets off to celebrate its sixth consecutive day of earnings.
One reason for the tremendous increase in SHIB price could be due to positive technical factors. SHIB unraveled the bull pennant that drove its price up. Crypto analyst Ali Martinez spotted a bull pennant pattern on his chart before his massive upswing on Feb. 2 and predicted that the price could approach the $0.000017 mark.
Optimism about the upcoming Shibarium also seems to have added to its foundations, as Bone ShibaSwap (BONE) also jumped close to 40% on Feb. Shibarium creator Unification shared the progress on the Tier 2 solution and said that “although the public beta network has yet to be established, that day is rapidly approaching.”
Large transactions jump a staggering 472%
Likewise, whales or large bearers may have contributed to the price increase. According to IntoTheBlock data, large transactions, defined as transactions exceeding $100,000, increased by a staggering 472%, the highest increase in recent weeks or even months. Large transactions often act as a proxy for whale behavior, which could be buy or sell. A large increase in this measurement could suggest extremely active whales. Meanwhile, according to the Shibburn website, a total of 13,518,918 SHIB tokens have been burned in the last 24 hours, with nine transactions. In addition, the SHIB burning rate increased by 67%.
Shiba Inu (SHIB) has given an important signal!
Cryptocurrency Shiba Inu (SHIB) has been attracting the attention of retail investors in recent weeks due to its impressive price increase. SHIB has gained over 20% in the past seven days, riding the general crypto market recovery wave that started in January. Crypto analyst Arman Shirinyan looks at some technical indicators for SHIB.
The Shiba Inu’s recent price hike is definitely worth considering. However, a closer look at the price performance of the asset reveals an interesting bearish trend formation between the SHIB price and the Relative Strength Index (RSI). RSI divergence is a very important technical analysis tool used to determine the strength of an asset’s price trend. In this case, the bearish cross between the Shiba Inu price and the RSI indicates that the asset’s recent price increase may not be sustainable in the long run.
In a typical bullish scenario, the price of an asset and the RSI move together, indicating a strong price trend. However, if the price of an asset continues to rise while the RSI is starting to fall, it suggests that the price trend has lost momentum and a potential price reversal may be on the horizon. It is also worth noting that the burn rate of the Shiba Inu, which refers to the rate at which tokens are removed from circulation, did not change significantly after the price increase. This may indicate that the recent price increase is of a speculative nature rather than a result of increased demand for the asset.
While the recent price surge of SHIB is certainly notable, it is important to keep in mind the formation of a bearish divergence between the asset’s price and the RSI. This technical indicator, with the asset’s burning rate unchanged, shows that the recent price increase may not be sustainable in the long run. As always, investors are advised to be cautious and research any asset thoroughly before making an investment decision.
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