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Shiba Inu has made a significant recovery over the past week; it jumped more than 20% in the same time frame. In the past 24 hours, SHIB appreciated by 2.9%, but despite rising in value, the coin remained stuck below $0.000011.

The coin broke above its severe resistance mark of $0.000010, which had not been breached in the past two months. SHIB was trading within an ascending parallel channel, which was showing an uptrend; however, the coin was currently outside the ascending trendline.

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Coming out of the ascending trendline, it was unable to break above its immediate resistance level. The technical outlook for the coin still represents a bullish trend on the chart of SHIB. Shiba Inu was overvalued at the time of writing, and if a piece is overbought, there are chances of a price correction.

This could be true if the coin does not break above the $0.000011 level. Currently, SHIB is trading 87% below its 2021 all-time high.

Shiba Inu Price Analysis: One-Day Chart

shiba inus
Shiba Inu was priced at $0.0000106 on the 1-day chart | Source: SHIBUSD on TradingView

SHIB was trading hands at $0.0000106 at the time of writing. The altcoin moved outside the ascending parallel line and saw resistance at $0.000011. Overhead resistance for Shiba Inu was $0.0000108; a move above this level may push SHIB through the $0.000011 mark.

The $0.0000112 mark previously acted as a strong resistance for the coin. If the coin fails to move above the resistance line, it could fall to $0.0000100 and then to $0.0000097 before rising again.

This could also present a short selling opportunity for traders. The amount of SHIB traded in the last session was green, representing bullish momentum.

Technical analysis

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Shiba Inu was overbought on the daily chart | Source: SHIBUSD on TradingView

SHIB managed to achieve a multi-month high in demand. The relative strength index was at 80, which meant the asset was overvalued and buyers were outpacing sellers. The last time the indicator touched the 80 mark was in August 2022, which led to a price correction.

The asset’s price moved above the 20-Simple Moving Average (SMA) line and was also above the 50-SMA (yellow) line as buyers boosted price momentum. Shiba Inu, however, struggled to move above the 200-SMA line (green).

shiba inus
Shiba Inu posted a buy signal on the daily chart | Source: SHIBUSD on TradingView

The altcoin price may remain congested during subsequent trading sessions due to sideways trading. However, the Moving Average Convergence Divergence (MACD) has formed green bars related to buying signals for the coin.

The latest signal has lost strength, indicating that buying the asset might not be the right move. The Directional Movement Index was positive, as the +DI (blue) line was above the -DI (orange) line.

The average Directional Index jumped near 40, illustrating the strength of the current price action. This meant that the overall SHIB was positive, but as the coin was restricted below the 200-SMA, there could be continued consolidation, leading to a loss in value.

Featured image from Unsplash, charts from TradingView.com.



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