Shiba Inu Shows Bullish Patterns as Bollinger Bands Tighten

Key Insights:

Shiba Inu's price moves within narrowing Bollinger Bands, signaling reduced volatility and possible trend direction soon.

RSI at 53.25 indicates neutral momentum, suggesting the market lacks strong buying or selling pressure for now.

SHIB returns to the crypto top 20 as Ethereum’s rally and upcoming Shibarium upgrade boost investor sentiment.

Shiba Inu (SHIB) registered modest gains, rising 1.25 percent in the last 24 hours, trading at $0.0000141, according to CoinMarketCap data. Earlier, the price touched $0.0000143 before settling slightly lower. The movement comes amid tightening Bollinger Bands on the daily chart, suggesting that a significant price shift may follow soon.

The current price of SHIB is also trending to the upper level of the Bollinger Band, which is situated between US$0.0000141400 and US$0.00001432. This zone has in the past been used as a launching pad to upward mobility. Nonetheless, actions of tightening bands are ample signals of a decline in volatility, which is a precursor to major shifts in direction. Such a configuration might cause the short-term investors to think of taking profits, and as a result, there might be a decline to the lower band region at $0.000013.

The Music Neutral RSI is a Red-Area Financial Asset

The relative strength index is standing at 53.25, meaning the position in the market momentum is neutral. The number indicates that there are no indications of being overbought or oversold, at least in the short term. Having this configuration in place, the market is currently balancing between a continuation and a short-term retrace, depending on how investors will behave.

Source: TradingView

The newfound gains have returned SHIB to the fourteenth position in the cryptocurrency market capitalization ranking. It ranks second in the current market capitalization, right below Toncoin (TON) with a market cap of 8.36 billion. The rally supports the high performance of Ethereum, which hit $3,835 on July 27, the highest mark in more than one year. Ethereum's positive trend has been useful in creating new interest in Ethereum-based tokens such as SHIB.

Shibarium Upgrade Brings Optimism to Development

Filling this favorable dynamic, the news about a serious upgrade of the Shibarium ecosystem broke in the Shiba Inu official portal updates. This is an update that is meant to simplify access by developers and facilitate wider usage. This could further affect the short-term price performance of SHIB positively as long as the sentiment supports it.

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