Introduction

This report provides an analysis of the cryptocurrency Shiba Inu (SHIB) based on the latest data as of 19 June 2023. The analysis includes a review of the current price, volume, bid/ask prices, day’s range, technical indicators, and moving averages.

Price and Volume Overview

As of 6:21 a.m. UTC on 19 June 2023, on Binance, Shiba Inu (SHIB) is trading at $0.00000717, up by $0.00000022 (+3.17%) from the previous close. The volume stands at 5,465,011,874,410 SHIB. The bid and ask prices are $0.00000717 and $0.00000718, respectively. The day’s range has been between $0.00000694 and $0.00000755.

Source: TradingView

Technical Indicators

Technical indicators are statistical tools used by traders and investors to predict future price movements and market trends.

Here’s a detailed breakdown of the technical indicators for Shiba Inu (SHIB):

  • RSI(14): The 14-day Relative Strength Index is 51.888, indicating a neutral position. This suggests that the price momentum is currently balanced between buyers and sellers. The RSI is a momentum oscillator that measures the speed and change of price movements on a scale of 0 to 100. Traditionally, the asset is considered overbought when the RSI is above 70 and oversold when it’s below 30.
  • STOCH(9,6): The Stochastic Oscillator is 55.093, indicating a buy position. This suggests that the price might be in an upward momentum. The Stochastic Oscillator is a momentum indicator that uses support and resistance levels. The term “stochastic” refers to the point of a current price in relation to its price range over a period of time.
  • STOCHRSI(14): The Stochastic RSI is 28.130, indicating a sell position. This suggests that the price might be in a downward momentum. The Stochastic RSI is an oscillator that measures the level of the RSI relative to its high-low range over a set time period.
  • MACD(12,26): The Moving Average Convergence Divergence is 0.000, indicating a neutral position. This suggests that the short-term momentum is balanced with the long-term momentum. The MACD is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price.
  • ADX(14): The Average Directional Index is 22.959, indicating a sell position. This suggests that there is a weak trend forming. The ADX is used to measure the strength or weakness of a trend, not the actual direction.
  • Williams %R: The Williams %R is -53.571, indicating a neutral position. This suggests that the market is in a balanced condition. The Williams %R is a momentum indicator that measures overbought and oversold levels.
  • CCI(14): The Commodity Channel Index is -27.3050, indicating a neutral position. This suggests that the price is relatively stable. The CCI is a momentum-based oscillator used to help determine when an investment vehicle is reaching a condition of being overbought or oversold.
  • ATR(14): The Average True Range is 0.0000, indicating high volatility. This suggests that the price is making large movements. The ATR is a technical analysis indicator that measures market volatility by decomposing the entire range of an asset price for that period.
  • Highs/Lows(14): The value is 0.0000, indicating a neutral position. This suggests that the price is relatively stable. This indicator is used to identify the highest and lowest prices for the asset over a particular period.
  • Ultimate Oscillator: The value is 56.633, indicating a buy position. This suggests that the price momentum is leaning towards the buyers. The Ultimate Oscillator is a technical indicator that is used to measure momentum across multiple timeframes.
  • ROC: The Rate of Change is -1.778, indicating a sell position. This suggests that the price might be in a downward momentum. The ROC is a momentum oscillator, which measures the percentage change between the current price and the n-period past price.
  • Bull/Bear Power(13): The value is 0.0000, indicating a neutral position. This suggests that the price momentum is currently balanced between buyers and sellers. The Bull Power measures the capacity of buyers to drive prices above the average consensus of value. The Bear Power, on the other hand, measures the capacity of sellers to drive prices below the average consensus of value.

Here is a summary of the technical indicators in table form:

The technical indicators summary shows two buy signals, three sell signals, and six neutral signals, leading to a summary action of “SELL”.

Moving Averages

Moving averages are a type of data smoothing technique that analysts use in technical analysis to identify trends in a set of data, such as stock prices. They help to reduce the noise and fluctuation in price data to present a smoother line, making it easier to see the overall direction or trend.

There are several types of moving averages, but two of the most common ones are the Simple Moving Average (SMA) and the Exponential Moving Average (EMA).

  1. Simple Moving Average (SMA): The SMA is calculated by adding together the prices for a certain number of periods and then dividing by that number of periods. For example, a 5-day SMA would add together the closing prices for the last five days and then divide by five. The SMA gives equal weight to all the data points in its calculation.
  2. Exponential Moving Average (EMA): The EMA is similar to the SMA, but it gives more weight to recent data. This means it responds more quickly to recent price changes than the SMA. The calculation of the EMA is a bit more complex than the SMA, involving an exponential smoothing factor to give more weight to recent prices.

The significance of different period moving averages (like 5-day, 10-day, 20-day, 50-day, 100-day, and 200-day) lies in the timeframe that traders are interested in:

  • 5-day, 10-day, and 20-day moving averages are often used for short-term trends. They respond quickly to price changes and are useful for traders looking to take advantage of short-term price movements.
  • 50-day and 100-day moving averages are more medium-term. They are less sensitive to daily price fluctuations and provide a clearer picture of the medium-term trend.
  • 200-day moving average is a long-term trend indicator. It’s less sensitive to daily price fluctuations and provides a clearer picture of the long-term trend. Many traders consider a market to be in a long-term uptrend when the price is above the 200-day moving average and in a long-term downtrend when it’s below.

It’s important to note that moving averages are lagging indicators, meaning they are based on past prices. They can help identify a trend but won’t predict future price movements.

Here’s a detailed breakdown of the moving averages for Shiba Inu (SHIB):

  • MA5: The 5-day SMA is 0.00000717, and the 5-day EMA is 0.00000700, both indicating a buy position. This suggests that the price is currently above the average of the past 5 days.
  • MA10: The 10-day SMA is 0.00000718, and the 10-day EMA is 0.00000700, both indicating a buy position. This suggests that the price is currently above the average of the past 10 days.
  • MA20: The 20-day SMA is 0.00000724, and the 20-day EMA is 0.00000700, both indicating a sell position. This suggests that the price is currently below the average of the past 20 days.
  • MA50: The50-day SMA is 0.00000707, and the 50-day EMA is 0.00000700, both indicating a buy position. This suggests that the price is currently above the average of the past 50 days.
  • MA100: The 100-day SMA is 0.00000689, and the 100-day EMA is 0.00000700, both indicating a buy position. This suggests that the price is currently above the average of the past 100 days.
  • MA200: The 200-day SMA is 0.00000680, and the 200-day EMA is 0.00000800, both indicating a sell position. This suggests that the price is currently below the average of the past 200 days.

Here is a summary of the moving averages in table form:

The moving averages summary shows ten buy signals and two sell signals, leading to a summary action of “STRONG BUY”.

Conclusion

The market conditions for Shiba Inu (SHIB) as of 19 June 2023 are showing mixed signals. The technical indicators lean towards a “sell” action, indicating a potential downward movement in the price of SHIB. However, the moving averages lean towards a “strong buy” action, suggesting a potential upward trend.

The high volatility indicated by the ATR(14) suggests that the price is making large movements, which could mean that the price changes might be sudden and significant. The neutral signals from the RSI(14), MACD(12,26), Williams %R, CCI(14), Highs/Lows(14), and Bull/Bear Power(13) suggest that the price momentum is currently balanced between buyers and sellers, indicating a period of market indecision.

In conclusion, while the market conditions are currently mixed, traders and investors should still exercise caution. The mixed signals from the technical indicators and moving averages suggest that there might be some price corrections in the short term. Furthermore, the high volatility indicated by the ATR(14) suggests that any price changes might be sudden and significant.

As always, while technical analysis tools can provide useful insights, they are not a guarantee of future performance, and all trading strategies should be used in conjunction with other market information and individual research.

Featured Image Credit: Photo / illustration by “Dylan Calluy” via Unsplash