Shiba Inu Gains 11% After Musk Tweet, then Gives It All Back

Shiba Inu continued on its bullish recovery as the divergence on the daily chart played out further. Helping the coin’s advance has been the recovery of Dogecoin, the Elon-Musk-supported token which it aims to parody. 

The Shiba Inu token spiked 11% after Elon Musk tweeted about naming his Shiba dog after Floki, the shipbuilder character from the Vikings movie series. However, with no real substantial fundamental support for this move, it quickly unravelled as the bears drove back prices.  

Technical Levels to Watch

The bullish divergence that saw Shiba Inu’s price forming lower lows and the RSI indicator forming higher lows supported a bullish Shiba Inu price prediction. This has played out with the price rising from the 0.00000550 support to the 0.00000834 resistance. Price has stalled at the resistance, just short of the channel’s upper border. A break of this upper border allows the bulls to target 0.00001025, with 0.00001202 forming an additional target to the north (24 May high). 

On the other hand, the failure of the bulls to surmount the 0.00000735 resistance following the intraday pullback forms a pinbar candle. This could allow for a more extended decline towards 0.00000681 and possibly 0.00000550, which the price floor for Shiba Inu. A breakdown of this floor fulfils bearish Shiba Inu price predictions that see further downside on this token.

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Shiba Inu: Daily Chart

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