Shiba Inu is seeing one of its biggest surges as it went on a spree. It started the day trading at $0.000015, but a spike in buying pressure saw prices shoot up. It broke several barriers and peaked at $0.000019, as attempts at $0.000020 failed.
The surge had many in shock as memecoin just printed a 23% candle. SHIB retested its three-month high with limited success. The cause of the surge is unknown, as speculations are growing. One possible reason for the hike could be an improvement to its ecosystem. One report said the burn rate increased by over 600%, resulting in the latest trend.
Another report stated that the reason for the uptrend was an announcement by the Shiba Inu developer Shytoshi Kusama. He revealed plans for the SHIB project to become a decentralized ecosystem to attract more users.
The charts also show another reason for the uptrend. A closer look at the one-day timeframe reveals that a breakout from a falling wedge triggered the altcoin’s recent surge.
Additionally, other indicators shed more light on the most recent trend. Momentum indicators highlight intense upward pressure driving the price increase. While it remains uncertain if the bulls can maintain this momentum, the rising Average Directional Index (ADX) suggests that the uptrend may persist.
Shiba Inu Will See Corrections
Other indicators on the one-day chart hint at an impending price correction. The relative strength index is above 70, meaning the asset is overbought. Traditionally, an overbought is due for a notable correctional downtrend.
Additionally, the Shiba inu is currently trading above the Bollinger band.
It is almost certain that the altcoin will lose and start a massive downhill movement, as the candles suggest that some traders are already taking profit. If the trend continues, SHIB will continue to decline. It may retrace $0.000017.
The highlighted support may buckle under intense pressure, causing the altcoin to drop as low as $0.000015.
