Shiba Inu (SHIB), the popular meme coin, is showing signs of a potential breakout after a technical indicator flashed a bullish signal. The Stochastic RSI (Relative Strength Index) has crossed for the seventh time in SHIB’s history on a weekly timeframe, an event historically followed by an average price increase of 146%.
Recent Price Action and Technical Analysis
SHIB has been on an upswing in the last 24 hours, reclaiming the $0.000017 level after dipping as low as $0.0000158 yesterday. This marks an 8.41% gain and positions SHIB among the top gainers in the ongoing crypto market rally.
Analyst Kevin identified a recurring pattern in SHIB’s historical price charts. Every previous instance of a weekly Stochastic RSI cross coincided with major support levels and was subsequently followed by a significant price surge, averaging 146%.
Understanding the Stochastic RSI
The Stochastic RSI is a technical indicator used by traders to identify overbought and oversold conditions in an asset’s price. In simpler terms, it helps gauge when an asset might be due for a correction or a potential breakout. Currently, the indicator suggests that SHIB is oversold, potentially indicating a buying opportunity.
SHIB’s Historical Performance with Stoch RSI Crosses
It’s important to note that past performance is not necessarily indicative of future results. However, looking back, a Stoch RSI cross in February, when SHIB was still trading with five leading zeros, was followed by a staggering 400% price increase within a few weeks. Similarly, a November 2023 cross led to an 80% surge for SHIB.
Also Read: Will Ethereum ETFs Spark a 100x Shiba Inu Rally? Experts Weigh In
SHIB’s Current Price Point and Potential Surge
SHIB is currently trading near a four-month low, a significant drop from its 2024 high of $0.00004534. The recent Stoch RSI cross emerged after SHIB hit a low of $0.00001294 on July 5th, its lowest point since the market downturn.
Based on the historical pattern and the current 146% surge projection, SHIB’s price could potentially reach the $0.00004 mark again, essentially reclaiming its yearly high. However, some analysts believe SHIB has the potential to surpass its all-time high and reach $0.0001 in a full-blown bull run.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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