Shiba Inu The downward trend observed in the Relative Strength Index (RSI) for is causing some concerns amid the first recovery rally in the last 80 days. A close examination of the chart reveals a picture that every SHIB investor should pay attention to.
At the heart of the issue is the notable bearish divergence in the RSI, a momentum oscillator that measures the speed and magnitude of price movements. Typically, the RSI operates on a scale from 0 to 100, where values above 70 indicate an overbought condition and values below 30 indicate an oversold condition.
A bearish divergence occurs when the price records higher highs while the RSI makes lower highs. This divergence often precedes a potential price reversal.
By evaluating the SHIB chart, we can detect a clear upward trend in the price, with SHIB reaching new highs. In contrast, the RSI fails to reflect this bullish move and instead shows a series of descending peaks. This divergence is a red flag warning that bullish momentum may be losing steam and a price reversal may be on the horizon.
What’s even more concerning for Shiba Inu owners is the broader context. The last 80 days have been particularly challenging for SHIB. Prices remained stagnant and the token struggled to gain traction.
The latest uptrend was one of the first examples of significant price increases in nearly three months. A reversal now would deal a devastating blow to the community’s morale and leave the Shiba Inu in a precarious position.
While the Shiba Inu’s recent price action provides a glimmer of hope for its dedicated community, a bearish divergence on the RSI points to potentially stormy waters ahead. Koinfinans.com As we reported, investors and traders should be ready for a potential correction.