Shiba Inu (CRYPTO: SHIB) surged more than 3% during Monday’s trading session, the fourth consecutive green trading day for the crypto dubbed the “Dogecoin Killer.”
Dogecoin (CRYPTO: DOGE) rose by about the same amount, but lags behind Bitcoin (CRYPTO: BTC), which rose more than 9%.
Ark Invest founder and CEO Cathie Wood said Monday that the collapse of SVB Financial Group proves that crypto poses no greater threat to investors than the traditional system, and that she and the crypto team at her management firm are not surprised to see Bitcoin and Ethereum skyrocket as a result. Read more here…
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Gold, considered the most popular and more traditional safe haven in times of economic instability, also reacted positively again on Monday, gaining more than 2%.
More than 602 million SHIB were removed from circulation in the last 24 hours, which may also explain Shiba Inu’s bullish price action. The long awaited Shibarium the release caused the crypto’s burn rate to increase by over 2,400%.
The combination of news helped Shiba Inu reclaim the 200-day simple moving average (SMA), indicating that the March 9 move below this level was a bear trap.
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The Shiba Inu Chart: Although Shiba Inu crossed above the 200-day SMA, indicating that a bull cycle is on the horizon, the stock has yet to confirm an uptrend by printing a higher high or a higher low on the 24-hour chart. Eventually, the Shiba Inu will have to retrace to print a higher low, and when that happens, bullish traders will see the crypto form a bullish reversal candlestick above the 200-day.
- Technical traders may have seen a bounce on the horizon as Shiba Inu’s relative strength index (RSI) on March 9 measured around 30%. When a stock or crypto’s RSI reaches or falls below that level, it is oversold, which can be a buy signal for technical traders.
- The move higher during Monday’s trading occurred on higher-than-average volume, indicating a high level of interest in Shiba Inu. If the momentum continues, and the Shiba Inu closes close to its high, it could indicate that higher prices will return during Tuesday’s session.
- If the Shiba Inu closes with a significant upper wick, it could indicate that the local top has taken place and a retracement is in the cards. Falling volume can also indicate that the crypto needs consolidation and is likely to trade sideways.
- Shiba Inu has resistance above at $0.00001178 and $0.00001259 and support below at $0.00001081 and $0.00000975.
Read Next: If You Invested $1,000 in Dogecoin When Mark Cuban and the Dallas Mavericks Welcomed Meme Crypto, Here’s How Much You’d Have Now
