Shiba Inu has led to the beginning of a possible base forming, as price action appears to have stabilized and settled into a narrow range near a low support area on the graph, with sentiment shifting positively. At press time, the coin is trading at $0.00000618 with an increase of 1.31% over the past 24 hours.
$0.0000061 Support Holds Amid Consolidation
The data from TradingView shows that after being in a prolonged downtrend, the price has reached an equilibrium.
Currently, the price is fluctuating in a narrow range between $0.0000060 to $0.0000061, with the selling pressure decreasing as it approaches a key support area below the price.
The price is trading below both its 50-day and 200-day moving averages, which can indicate a bearish trend in the most general sense. However, the narrowing of the trading range indicates a decrease in volatility and potential base-forming activity.
The On-Balance Volume (OBV) has recently begun to trend positively after having bottomed out; a trend that indicates increasing amounts of buying activity, even though the price is still relatively stable.
The divergence between the rising OBV buying activity and the price is generally a signal of early accumulation; however, confirmation would be required through an upside breakout from nearby resistance levels.
Also Read: Shiba Inu Revisits Zone That Triggered 1,660% Rally
85% Bullish Bias Supports Stability
According to the data from CoinMarketCap, the percentage of participants in the community providing a positive sentiment statistic is currently at approximately 85%.
Although in general, sentiment does not push the price of Shiba Inu, it does generally provide short-term stability in prices during periods of gradual recovery when the price is being supported by volume trends that are also improving.
In conclusion, signs have emerged that SHIB is stabilizing at a major support level. Positive sentiment, as well as positive volume indicators, provide additional support.
Although these are encouraging factors, the greater trend is still unknown; thus, additional confirmation is needed. As always, any trading should be done with caution due to extreme volatility in the market.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read: Shiba Inu Consolidates as $0.0000625 Resistance and $0.0000572 Support Hold
