SHIB Price Analysis: Why Shiba Inu Rockets As Crypto Fear And Greed Hits 74
Shiba Inu continues to defy the general sluggish crypto environment to post impressive gains as the week kicks off. The dog-themed meme coin boasts a 3.5% increase to $0.00002536 during US business hours. This is on top of a 5.5% surge in seven days backed by soaring volume to $575 million based on CoinMarkeCap data. Should SHIB price analysis sustain above the $0.000025 level, the next breakout could boost it past $0.00003.
What’s Next For Shiba Inu As Crypto Fear And Greed Index Shoots Up
According to Alternative, a platform that tracks market sentiment, the crypto fear and greed index is rising consistently. From agreed level of 67 last month, the index is now at 74, implying euphoria.
The crypto market is known for being very emotional. This means that investors become greedy as prices soar, signaling the fear of missing out (FOMO). It has also been observed that “people sell their coins in the irrational reaction of seeing red numbers.”
There are two extremes of market behavior, with extreme fear implying investors are worrisome. For the ardent investor, this is often a good time to buy.
On the flip side, greed signals the exhaustion of the uptrend. The market is due for a correction. So as Shiba Inu ascends toward $0.00003, investors must be cautious—a pullback could be on the way.
SHIB Price Analysis: Signals From The Technical Structure
Shiba Inu sits on top of all three bull market indicators, starting with the 200-day, 50-day, and 20-day Exponential Moving Averages (EMAs) (the purple, red, and blue lines overlaying the chart).
The Moving Average Convergence Divergence (MACD) has rebounded into the positive region, reinforcing the bullish structure. Should the blue MACD line hold above the red signal line, the path of least resistance will remain upwards.
Breaching the immediate resistance at $0.000026 may encourage more people to buy SHIB, hence the FOMO in the crypto fear and greed index. This is likely to boost the price above $0.00003 and bring the next target at $0.000035 within reach.
Nevertheless, traders cannot ignore the risk of a pullback from the current price level. In such a case, selling Shiba Inu might be a good idea. The same people can apply tested dollar cost averaging (DCA) strategies to buy low and increase their holdings of the meme coin.
The EMAs are in a position to provide support. Other key levels to watch out for are buyer congestion at $0.000022 and $0.00002, respectively. After collecting liquidity, Shiba Inu would be poised for a stronger breakout.
The post SHIB Price Analysis: Why Shiba Inu Rockets As Crypto Fear And Greed Hits 74 appeared first on CoinGape.