Shiba Inu Skyrockets But Concerns Of A Potential Sell-Off Lingers

Shiba Inu, the cryptocurrency popularly dubbed as the Dogecoin Killer, witnessed a remarkable surge in value over a 24 hour period, posting a staggering increase of over 90%. Recent developments have positioned the meme crypto ahead of its competitors, including Dogecoin, Pepe, and BONK. More surprisingly, it even managed to surpass both Bitcoin and Ethereum.

SHIB Explodes

Analysis by LunarCrush, a platform specializing in social media insights, reveals a significant uptick of 51% in discussions related to Shiba Inu across various social platforms within a single day. This surge has propelled Shiba Inu back into the top 10 cryptocurrencies by market capitalization, with its valuation reaching $25 billion, inching closer to the $27 billion market cap of Dogecoin.

This notable ascent in the crypto market saw the price of SHIB reach $0.00002 on March 2nd, 2024. Weekly charts depict a dramatic price surge, often referred to by traders as a God Candle, with SHIB seeing its value skyrocket by 120% since February 29th. Over the past week, Shiba Inu has recorded gains totaling 289%, marking a resurgence to price levels last observed in the early stages of May 2022.

Fears Of A Sell-Off

However, despite the excitement surrounding Shiba Inu, cautionary signs are emerging for investors. The Relative Strength Index (RSI), a key metric for assessing price movement, currently stands at an elevated 98.36949660, surpassing the typical overbought threshold of 70, which often indicates the potential for a subsequent decline or significant price correction.

Furthermore, other technical indicators such as the Commodity Channel Index (CCI), and Williams Percent Range echo the indiciation of the RSI, suggesting that Shiba Inu may be primed for a sell-off, paving the way for a market correction. As of the time of writing, SHIB is trading at just under $0.00004, reflecting a notable increase of 90.15% over the past 24 hours, according to data by CoinGecko.