• Shiba Inu (SHIB) has seen a strong surge recently, up by more than 60% since the beginning of 2021.
• The RSI reading jumped to 86, which is 16 points above the overbought threshold of 70.
• There is a clear formation of a bullish reversal pattern on the weekly chart, dubbed the falling wedge.
Shiba Inu (SHIB) has seen a surge in its price recently, up by more than 60% since the beginning of 2021. This is due to the development of Shibarium launch and the massive popularity of the world’s second-largest memecoin. On Wednesday, January 18, the relative strength index (RSI) reading for Shiba Inu jumped to 86, which is 16 points above the overbought threshold of 70. This high RSI reading indicates that Shiba Inu has been excessively bought by investors and could potentially lead to a price correction.
However, the SHIB price has managed to stay above its 200-day moving average, and if it continues to hold this level, there is a possibility that the SHIB price rally could continue. On the weekly chart, there is also a clear formation of a bullish reversal pattern, known as the falling wedge. This formation builds up with the price trending lower inside a range defined by the descending, converging trendlines. If the price breaks above the upper trendline, it could be interpreted as a bullish signal with further price gains ahead.
The launch of Shibarium has also increased investor confidence in Shiba Inu, and many analysts are predicting that SHIB could potentially hit the $0.10 mark soon. With the current price momentum, it is not impossible that SHIB could reach such a high level. However, investors should always be cautious and not get too carried away with the hype and instead do their own research before investing in any cryptocurrency.