Unfortunately, Shiba Inu having trouble moving forward
At the heart of the matter is the conspicuous bearish divergence on the RSI, a momentum oscillator that measures the speed and magnitude of price movements. Typically, the RSI operates within a scale of 0 to 100, where values above 70 signify an overbought condition and values below 30 indicate an oversold condition. A bearish divergence occurs when the price records higher highs, while the RSI charts lower highs. This incongruity often precedes a potential price reversal.
What's even more concerning for SHIB holders is the broader context. The past 80 days have been particularly challenging for SHIB. Prices remained stagnant, with the token struggling to gain traction. The recent uptrend marked one of the first significant price growth instances in nearly three months. A reversal now would be a devastating blow to the community's morale, leaving Shiba Inu in a precarious position.
While Shiba Inu's recent price movement provided a glimmer of hope to its dedicated community, the bearish divergence on the RSI signals potential stormy waters ahead. Investors and traders should be ready for a potential correction.