Bollinger Bands are tightening on SHIB
This means that volatility is decreasing and the price is moving within an increasingly narrower range. This usually anticipates that the market is 'building energy' and a strong movement in one direction may occur soon. 🔺🔻⚠️
🔎 What could happen with SHIB:
📈 Bullish scenario:
If the price breaks above the upper band with increasing volume, it can initiate a quick rally (sometimes accompanied by a short squeeze in memecoins like SHIB).
📉 Bearish scenario:
If the price breaks below the lower band with strength, it can drop with the same intensity, as many traders interpret the tightening as a precursor to a trend.
⏳ Important:
The bands do not indicate in which direction the movement will occur, only that a narrow range usually precedes a breakout. To confirm direction, it is advisable to look at:
Volume (if it increases upwards or downwards).
Nearby support and resistance levels.
Additional indicators like RSI or MACD.
👉 In summary: tightening is a sign that a strong movement is coming, but direction needs to be confirmed before entering to avoid false breakouts.
