Jun 22, 2022 02:00AM ET
By: AnalysisWatch
Shiba Inu rose 31%, along with other altcoins on the market.
The price of SHIB is now at the resistance level of 0.0000104 USD.
Technical analysis suggests that the price of SHIB may correct as a bearish divergence is forming on the chart.
For the first time in a while, Shiba Inu made a decent gain for the first time in a while as its price rose slightly. However, the rally seems to have ended around a resistance level, which could eventually lead to a correction for SHIB.
On June 21, SHIB's price rose 31%. Other altcoins, such as Synthetix, Storj, and Dogecoin, to name a few, also rallied during this period.
Additionally, SHIB's relative strength index produced higher lows while the price produced lower lows between May 12 and June 13—creating a bullish divergence.
This is the reason why the SHIB price rose in this manner. However, this bullish move is now threatened from two directions.
First, the SHIB price is struggling to rise above the $0.0000104 barrier. Rejection of that level could trigger a 17% decline to around 0.0000095 USD.
Meanwhile, the SHIB also set lower highs between May 30 and June 21, and the RSI set higher highs.
This configuration with the RSI and the SHIB price is a bearish divergence, which further strengthens the argument that there could be a 17% downside move and correction overall. Investors should therefore pay close attention to what the SHIB price does today.
Even though the SHIB situation looks bullish right now, investors should pay close attention to the RSI on the 4-hour chart.
A bearish divergence has appeared on the indicator, suggesting that there may be a correction. If the SHIB price closes today's daily candle above the 0.0000104 USD level, the SHIB price could continue to rise by 33% and reach the 0.0000139 USD target.