In the midst of the first rebound rally in the previous eighty days, there are some worries due to the negative divergence seen on the Shiba Inu Relative Strength Index (RSI). Upon closer examination, the chart tells a tale that investors in SHIBs should all take note of.
The key factor in this whole situation is the obvious bearish divergence on the RSI, a momentum oscillator that gauges the strength and speed of price changes. The relative strength index (RSI) typically runs on a range from 0 to 100, with values above 70 denoting an overbought situation and values below 30 denoting an oversold one. When the price makes greater highs and the RSI makes lower highs, this is known as a bearish divergence. This discrepancy frequently occurs before a possible decline in price.
We can see a distinct rising trend in price by analysing the SHIB chart, with SHIB hitting new highs. On the other hand, the RSI is displaying a sequence of falling peaks rather than reflecting this bullish momentum. This divergence is a warning sign that a price reversal may be approaching and that the bullish momentum may be waning.
The larger picture is significantly more worrisome for SHIB holders. For SHIB, the last 80 days have been extremely difficult. Prices stayed unchanged, and the token had trouble taking off. One of the first notable examples of price rise in almost three months was the current uptick. Shiba Inu would be in a dangerous situation if there was a turnabout now as it would deal a severe damage to community morale.
Although the price movement of Shiba Inu gave its devoted community some optimism recently, the bearish divergence on the RSI suggests that there may be rough seas ahead. Traders and investors should be prepared for a possible correction.
