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The price of popular meme-inspired cryptocurrency Shiba Inu (SHIB) may be on the verge of stunning price action in the coming weeks. In particular, as the Bollinger Bands indicate on the weekly price chart of SHIB, the price of the asset found support at a median level, despite a painful sell-off yesterday.
Bollinger Bands, a widely used technical analysis tool, consists of three lines: an upper band, a middle band based on a 20-day moving average and a lower band set two standard deviations away from this average. This tool, developed by John Bollinger, is valued for its ability to track price trends and assist in interpreting potential future movements.
The issue is that while the Shiba Inu token maintains above this point, a bullish bias prevails. In the context of the Bollinger Bands, it may mean a test of seller reaction at the upper curve, which currently stretches at $0.00003191, which is up 50% from the current level.
If the price of the Shiba Inu token loses this support, though, a drop down to $0.00001075 becomes the main scenario, and this risk the same 50% move for SHIB, but in this case downward.
Thus, in terms of the future of the Shiba Inu token, there are really two equal possibilities, with either a rise worth 50% or a dump by the same margin.
Considering the fact that the period from January to March is considered the most prosperous for the cryptocurrency market, as drawn from price history, and the fact that SHIB holds strong above the crucial price point, it is safe to say the former scenario right now is more probable.