The price of Shiba Inu rose by 340% in a matter of days due to a tweet from Elon Musk. However, the restart of the bullish rally of Bitcoin could also cause the value of the cryptocurrency meme to skyrocket.
Shiba Inu (SHIB) has been one of the most prominent altcoins in October, as its value has risen by more than 300% in a matter of days. The renewal of the bullish rally of Bitcoin and its inclusion on cryptocurrency exchange WhiteBIT may have contributed to it.
Another positive factor that has notably influenced the price of the meme cryptocurrency is Elon Musk. The billionaire businessman caused the value to move higher by posting a photo of a Shiba Inu puppy on Twitter.
A few hours later, the price of SHIB started going up, reaching a 340% increase in a matter of days. The enthusiasm rekindled by the post from Musk has allowed that to happen.
A Short-Term Analysis Reveals that a Drop Is Coming
Shiba Inu is in the consolidation phase, and its level of volatility is not as high as in early October. That is positive for SHIB, as buyers can sell their earnings and take new positions after a 340% rally to the upside.
SHIB bulls have successfully defended the price support of Shiba Inu at USD 0.00002495. That allowed the value to break to the upside and conclude with the bearish channel under development. In other words, traders have already taken profits, and this is the time to buy again.
The green candlestick that breaks the bearish channel clearly shows the continuation of the bullish movement, exceeding EMAs of 20 and 50 periods. However, the closest resistance level is precisely at USD 0.00002987, for which investors need to be vigilant.
Another element that needs consideration is the oscillator that shows bullish strength when crossing above zero. In addition, the crossing of the candlesticks above the EMAs also confirms the abovementioned.
It is also possible to notice the rejection of the RSI that is about to enter oversold territories again. It is going above 50 points, which suggests that traders and investors are buying again.
The Evolution of the Price of SHIB in the Next Days
Investors should be vigilant as the price of Shiba Inu could reject resistance at USD 0.00002987 in the coming days. However, if the value of the meme cryptocurrency exceeds that level, the closest resistance will be at USD 0.00003218.
Furthermore, there is likely to be another general correction in the cryptocurrency market. The price of Bitcoin has been on the rise for several days, so profit-taking is essential for that trend to continue. For that reason, it is possible to say that there will also be a correction in the value of Shiba Inu in the short term.
SHIB is trading at around USD 0.000028 and has a market capitalization of approximately USD 13,937,615,819. On its part, Bitcoin reached a new all-time high of nearly USD 67,000 and its market capitalization rose above 1.2 trillion, according to CoinGecko.
By Alexander Salazar
