Shiba Inu Attempts Recovery With Dogecoin, Bitcoin: Why A Bigger Bounce May Come – Benzinga – Benzinga

Shiba Inu SHIB/USD was trading about 5% lower at press time, which represented somewhat of a recovery from the 27% decline the crypto had suffered earlier in the 24-hour trading period.
The cryptocurrency sector took a turn for the worse Wednesday evening, with Bitcoin BTC/USD, Ethereum ETH/USD and retail favorite Dogecoin DOGE/USD plummeting 12%, 18% and 23%, respectively, which brought the three cryptos to 52-week lows.
Shiba Inu narrowly avoided printing a new all-time low before bouncing up and may avoid that fate for the immediate future because the crypto looks set for a bigger bounce over the coming days.
The crypto’s relative strength index (RSI) is measuring at about 24%, which puts the stock in deep oversold territory.
RSI is an indicator technical traders use to measure bullish and bearish price momentum. RSI levels can range between 0 and 100, with levels between 30 and 70 generally considered to be healthy.
When a stock’s RSI falls below the 30% level, it's considered to be oversold. When a stock enters oversold territory, it indicates the securities price no longer reflects the asset's true value, which can signal a reversal to the upside is in the cards.
When a stock’s RSI rises above the 70% area, it is considered to be overbought. When a stock enters overbought territory, it signals the securities price is elevated to its intrinsic value, which can signal a reversal to the downside is on the horizon.
RSI is best used when combined with other signals and patterns on a stock chart because stocks can remain in oversold and overbought territory for an extended period of time before reversing.
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The Shiba Inu Chart: Shiba Inu is trading in a downtrend, with the most recent lower high printed on May 1 at the $0.00002216 mark and the most recent confirmed lower low formed at $$0.00001840 on April 30. Thursday’s low-of-day may become the next lower low within the pattern but Friday’s candle will need to print for confirmation.
 
shib_may_12.pngSee Also: Why Dogecoin Spin-Off Shiba Inu Is Nosediving Today
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