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.
Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.
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
Visit Benzinga’s Crypto Homepage1,000,000+ depend on Benzinga Crypto every month
© 2022 Benzinga does not provide investment advice. All rights reserved.