In a surprising turn of events, Shiba Inu (SHIB) has experienced a significant 7% increase in value within just one hour, standing out amidst a broader crypto market rebound. The rise is particularly noteworthy as it occurs without the influence of major news or announcements over the weekend, pointing to technical factors as the primary catalyst.
Technical analysis plays a pivotal role in the cryptocurrency market, where price movements can often be attributed to patterns, trends, and indicators rather than fundamental news. In the case of SHIB, the 7% surge appears to be the result of such technical factors.
Hourly Chart Analysis
Traders and analysts alike have observed that SHIB’s price bounced sharply off a key support level, a sign that the token was oversold in the very short term. SHIB’s price has largely been stagnant since last week as traders eagerly awaited a decisive move.
SHIB/USD Hourly Chart, Courtesy: CoinMarketCap
As seen on the hourly chart, Shiba Inu recorded three massive green hourly candlesticks after the price hit support at lows of $0.00002155. In the last hour, Shiba Inu posted a gigantic green candlestick, the largest in the recent four hours, with the price reaching highs of $0.00002395.
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At the time of writing, SHIB is up 5.52% in the last 24 hours, reaching $0.00002357. The overall crypto market is showing signs of recovery, with several major cryptocurrencies regaining lost ground.
Positive Sentiment And Speculation
This rebound has engendered positive sentiment among investors, potentially contributing to SHIB’s rapid price increase. Moreover, the market’s optimism, coupled with SHIB’s technical indicators, forged a perfect storm for the token’s value to surge.
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As SHIB progresses, traders closely monitor price movements for upcoming resistance levels, speculating on its potential rise. This week, the United States will unveil April’s significant CPI data, possibly inducing volatility in crypto markets.
The surge in SHIB’s value, propelled by technical factors and market sentiment, highlights the dynamic nature of the cryptocurrency market. Consequently, investors and traders maintain vigilance as they navigate the ever-changing landscape of digital assets.
