Cryptocurrency unit of Shiba Inu (SHIB)has attracted the attention of individual investors in recent weeks due to its impressive price increase.
Shiba Inu (SHIB) Shows 20% Rise
Digital asset in the last seven days 20% value It has been swept away by the wave of the overall cryptocurrency market recovery that began in January.
While the Shiba Inu’s recent price increase is certainly notable, a closer look at the asset’s price performance reveals an interesting bearish divergence formation between the Shiba Inu price and the Relative Strength Index (RSI).
The RSI divergence is an important technical analysis tool used to determine the strength of an asset’s price trend. In this case, the bearish trend 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, when an asset’s price continues to rise and the RSI begins to drop, it indicates that the price trend may be losing momentum and there may be a potential price reversal on the horizon.
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It should also be noted that the Shiba Inu burn rate, which refers to the rate at which tokens are removed from circulation, has not changed significantly following the price increase.
It should also be noted that the bankrupt cryptocurrency company Voyager is one of the largest holders of the Shiba Inu token.
According to data released recently, one of Voyager’s accounts owns 6.8 trillion SHIB, equivalent to $81.8 million and 1.23% of the circulating supply.
At the time of this writing SHIB price is $0.00001520 traded at levels.
*Not investment advice.