SHIB Heading To Oversold Territory Despite 24 Hour Price Rise

Shiba Inu (SHIB) joins the list of cryptos that have experienced a 24-hour gain according to CoinMarketCap.

The price of SHIB has risen 2.53% in the last 24 hours to $0.00002142 but is still down -5.47% in the last 7 days. The increase in SHIB’s price takes its total market cap to more than $11 billion. This ranks it 15th on CoinMarketCap’s list of the largest crypto project market caps.

SHIB has also weakened a bit against Ethereum (ETH) and strengthened slightly against Bitcoin (BTC). At the time of writing, 1 SHIB is worth 0.000000000549 BTC and 0.000000007507  ETH, which is a 0.05% increase against BTC and a -0.34% decrease against ETH. 

The 24-hour trading volume of SHIB has been hit with a double-digit decrease of -34.60%.

Looking at the daily chart for SHIB/USD, SHIB seems to be heading towards oversold territory as the relative strength index (RSI) is at level 38.19. The price of SHIB also hovers between the lower level and middle level of the Bollinger bands, which could suggest that the price of SHIB will continue to fall over the medium-term during this bearish cycle.

One event that will serve as resistance against the fall in SHIB’s price is the current burn portal that has been deployed by the SHIB team. This will decrease the total supply of SHIB, which will in turn make it more valuable as it becomes more scarce. Of course, the burning of SHIB’s supply will happen over time.

As SHIB transitions out of a bear cycle, and its supply diminishes, we could see SHIB make a decent recovery bull run in the near future.

Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.