In recent days, the crypto market has been posting gains, even the Shiba Inu (SHIB) is on the upside. However, behind this prolonged rise there are several fundamental factors that we must consider. Next, we will detail it.
Beforehand, it is worth noting that SHIB is currently trading at US$0.00001192, registering a loss of 0.67% in the last 24 hours, and accumulating a 7-day gain of 5.26% as we can see on CoinMarketCap.
What may be driving SHIB’s rise?
First of all, it is worth talking about the FED meeting. Since, this had a very positive impact for the markets in general; from the stock market, to cryptocurrencies. Since, although a rise of 75 basis points was expected, there were rumors that it could be 100 points; something that would certainly be quite damaging for the markets. And as explained on the KEY ALERTS Telegram channel, the cryptos reacted quite well after it was published that it would only be 75 points.
It is also important to talk about new projects that are under development by the SHIB team. The first of them is a second layer network, which will be called Shibarium. However, they also announced that there will be a stablecoin, and that it will have quite secure mechanisms, in order to prevent it from losing parity with the dollar; as has happened with UST or other similar ones.
To all this we have to add that they will soon launch an NFT collectible card game, a reward currency called TREAT, among other plans related to the Metaverse and Web3. Without a doubt, these projects can attract a new group of investors to the SHIB ecosystem.
Certainly, the above facts are driving the Shiba Inu higher. However, it is worth considering that the token accumulates 3 consecutive weeks on the rise. So that, in the short term there may be a reversal in the trend.
Technical analysis on 4 hour charts
Although we are in a long-term uptrend, sitting on the 4-hour time frame, we can see that we are starting a correction. In fact, if we look at the daily or weekly timeframe, we can see the formation of a bullish channel, but during the course of the rise it is normal for traders to take profits. And such profit-taking will happen in no time…
As you can see in the image below, we are about to break the bullish channel; even Elliott waves confirm that the bullish momentum is over. Also, the MACD shows a cross below zero points and its EMAs also crossed lower.
This without adding that the Japanese candles are right at the central levels of the ENV channels. If you are crossing below the central mean of the ENVs, a correction to the support reflected by the white line is sure to follow.
The RSI at 50 points reflects that there is neutrality. However, today at 2am there was a strong bearish crossover with the moving averages. Therefore, it is quite likely that we will see the indicator fall to oversold levels. The latter would finish validating the correction to the support located around US$0.00001121.
The information in this content should be taken for informational purposes only, not intending under any point of view to encourage the purchase / sale of financial assets..