Gushiken Yona
A technical pattern on the Shiba Inu chart this week has drawn the attention of cryptocurrency analysts, with one suggesting it could signal significant price gains for the widely followed digital asset.
Bullish Divergence Emerges on Shiba Inu Chart
Jason Marks (@JavonTM1 on X), publishing analysis on the social media platform X, identified what is known in technical analysis circles as a regular bullish divergence. This type of signal is sometimes interpreted by traders as an indicator of potential upward price movement in the near future.
“$SHIB (Shiba Inu) right there along with a Regular Bullish Divergence as well! BY THE NUMBERS, BULLS CAN BE COMING TO REGAIN MAJOR CONTROL,” the analyst noted.
The specific pattern highlighted by the crypto analyst typically materializes when the price of an asset, such as Shiba Inu ($SHIB), records successively lower lows over a period, while a corresponding technical indicator measuring momentum, often the Relative Strength Index (RSI), simultaneously forms higher lows.
Marks asserted this divergence could signify that “bulls can be coming to regain major control” of the market trend. His analysis was accompanied by a chart visually depicting the pattern and included an arrow suggesting a potential upward trajectory for the price.
Market Reaction and Sentiment Alongside Shiba Inu Chart Signal
The observation of the potential bullish signal coincided with market data reflecting modest gains for Shiba Inu. At 4:27 p.m. ET on Wednesday, the token was trading at approximately $0.00001222, representing an increase of about 3.8% over the preceding 24 hours, according to data from CoinMarketCap.
The trading volume during that same period was reported at $115 million. Shiba Inu’s total market capitalization stood near $7.2 billion, also showing a nearly 4% increase, aligning with the daily price gain.
Community sentiment data aggregated by CoinMarketCap indicated a strongly positive outlook among participating users. Based on nearly 965,000 votes cast regarding Shiba Inu’s prospects, approximately 88% expressed a bullish viewpoint, while 12% held a bearish stance.
Broader cryptocurrency market trends, macroeconomic news, developments within the Shiba Inu ecosystem itself (such as token burns or layer-2 scaling solutions), and even social media mentions by influential figures can significantly impact its price. Therefore, while the bullish divergence noted on the Shiba Inu chart provides a point of interest for technical traders, its ultimate significance will depend on how these other market forces play out and whether sustained buying interest materializes.
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Yona has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
