As an experienced financial analyst, I’ve seen my fair share of market trends and price movements across various asset classes. The recent surge in Shiba Inu (SHIB) price has caught my attention due to its significant shift towards bullish momentum. With a technical perspective, the 6.5% daily increase and 12.5% weekly gain are noteworthy signs of potential reversal or weakening bearish pressure.
The price of Shiba Inu (SHIB) has experienced a substantial surge, gaining 6.5% in the last day and 12.5% over the past week. This represents a strong shift towards positive price movements. A technical examination of the SHIB/USD daily chart indicates a downward trendline, which the price has failed to break through during each daily closing for the previous two months.
Today’s price fluctuations have brought about a change in direction for Shiba Inu. The previous falling trendline, which had controlled its decline, was recently broken, indicating a possible turnaround or at least a lessening of the bearish influence. As Cold Blooded Shiller put it, “Meme coins’ rule is to buy the meme when the trendline breaks.”
One of the commandments of memes is
thou shalt always long the meme when the trendline snaps
— Cold Blooded Shiller (@ColdBloodShill) May 4, 2024
Before the price surge in 2021 Q4, I observed that identifying entry points for 20IQ required keeping an eye out for specific signals. One such signal was a trendline breach, which had been consistently upheld by every daily close over the past two months. I noted with interest as Shib began to display some early signs of movement.
The price movement is backed up by the arrangement of Exponential Moving Averages (EMAs). Specifically, the 20-day EMA is around $0.00002238 and the 50-day EMA lies at $0.00002131. Yesterday’s daily close broke through both of these averages.
Moving forward, the 100-day and 200-day Exponential Moving Averages (EMAs) approximately at $0.00001831 act as significant areas of support. These levels suggest robust buying opportunities should a substantial pullback take place. The upcoming interactions between price and these EMAs will be pivotal in assessing the longevity of the ongoing breakout.
The Fibonacci retracement levels drawn from Shiba Inu’s recent peak to trough are indicating significant price movements. Specifically, the 0.236 Fib level at $0.00002483, which was breached during the previous trading session, now acts as an essential support for the coin in the near term.
As an analyst, I would emphasize the significance of this level based on its function in validating the authenticity of the latest price break above the descending trendline. Otherwise, this breakout could be perceived as insignificant or even misleading.
As a crypto investor, I’m keeping a close eye on SHIB‘s current price action at the $0.00002483 support level. If today’s daily candle manages to close above this mark, it would be a strong indication that SHIB’s upward trend is not just a temporary move but rather a more lasting one. This bullish signal would instill confidence in investors that the breakout is legitimate and that the market sentiment might be turning increasingly bullish.
As a SHIB investor, if the price holds firm above its latest support level, the next significant resistance lies at $0.00002882, which aligns with the 0.382 Fibonacci retracement. A successful breakthrough beyond this level could pave the way for potential gains towards $0.00003205 and $0.00003527 – corresponding to the 0.5 and 0.618 Fibonacci retracements, respectively.
Achieving the 0.618 mark, also known as the “golden ratio,” may present an attractive opportunity for investors, potentially leading to a significant 40% increase in returns compared to current prices. Keeping a close eye on this technical indicator could prove profitable.
As an analyst, I’ve noticed an increase of over 30% in trading volume within the past 24 hours. This heightened activity suggests that market participants are actively engaging with the asset price movements. Such participation is essential for validating any breakout and lending credibility to the trend. Furthermore, the Relative Strength Index (RSI) currently stands at 55.05. In my perspective, this reading indicates a neutral-to-slightly bullish stance for the asset. The RSI not being overbought or oversold offers potential for further price appreciation without immediate concerns of entering overbought territory.
In simpler terms, the Shiba Inu cryptocurrency’s price has surged past its previous downward trendline, indicating a potential shift in market sentiment toward optimism. For investors, it’s essential to keep an eye on the daily closing price reaching $0.00002483 as a strong sign of this trend reversal. If this level is convincingly held, the path could open up for further gains and potential ascents to higher Fibonacci levels.
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2024-05-16 19:17