The cryptocurrency Shiba Inu (SHIB) has caught the eye of retail traders in current weeks resulting from its spectacular value surge. The digital asset has gained 20% in worth over the previous seven days, driving the wave of the final cryptocurrency market restoration that started in January.

Whereas the current value surge of Shiba Inu is actually noteworthy, a more in-depth take a look at the asset’s value efficiency reveals an fascinating formation of bearish divergence between the Shiba Inu value and the Relative Energy Index (RSI). RSI divergence is an important technical evaluation device used to find out the energy of an asset’s value development. On this case, the formation of bearish divergence between the Shiba Inu value and RSI means that the asset’s current value surge might not be sustainable in the long term.

In a typical bullish state of affairs, an asset’s value and RSI transfer in tandem, indicating a powerful value development. Nonetheless, when the value of an asset continues to rise whereas the RSI begins to fall, it means that the value development could also be dropping momentum, and {that a} potential value reversal might be on the horizon.

It is usually price noting that Shiba Inu’s burn fee, which refers back to the fee at which tokens are faraway from circulation, has not modified dramatically following the value surge. This might recommend that the current value spike is extra of a speculative nature slightly than a results of elevated demand for the asset.

Whereas Shiba Inu’s current value surge is actually noteworthy, you will need to remember the formation of the bearish divergence between the asset’s value and RSI. This technical indicator, together with the asset’s unchanging burn fee, means that the current value surge might not be sustainable in the long term. As all the time, traders are inspired to train warning and totally analysis any asset earlier than investing choice.