First Shiba Inu (SHIB) Trend Reversal Signal Appears

Whilst the cryptocurrency market enjoys its unexpected recovery, numerous assets are reaching key price thresholds that might act as strong springboards for the market. Ethereum, for example, is showing a 314% increase in transaction fees, which is a direct indicative of an upcoming recovery of the market. Shiba Inu has experienced a significant preemptive signal for the market as it has surged above the 50-day exponential moving average.  

Ethereum's mixed dynamic

The daily burning rate of Ethereum has also increased, surging from only 80.27 on September 1 to 1,360 today. The number of burned Ethereum is yet another indicator you shouldn't miss when tracking the overall performance of Ethereum network. 

Unfortunately though, Ethereum's number of active accounts fell sharply, showing a value of around 385,000. But one way or another, a local growth of network activity might become a result of a more substantial increase, which will push the number of active wallets on the network higher. 

Shiba Inu's sentiment

Being an early predictor of a possible trend reversal, the current move above the 50 EMA indicates growing bullish sentiment. SHIB is now getting close to a significant resistance level at the 100 EMA even though this breakout may thrill some traders. 

This has historically been a difficult time for assets and if SHIB finds it difficult to break through it might mean the end of the current rally. The chart shows that SHIB has been in a longer-term bearish trend since its last peak with a string of lower highs and lower lows. For SHIB the 200 and 100 EMAs continue to be major obstacles. If they fall below these marks the asset may resume its retracement. 

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If SHIB can break through the 100 EMA there is still a chance for additional growth even though this rally may end sooner than expected. If it is successful the 200 EMA would be the next level of resistance which might indicate a more persistent upward trend.

The recent spike above the 50 EMA for Shiba Inu is a good sign but the assets next move will be heavily influenced by the resistance level at 100 EMA. One way or another, Shiba Inu is one of the most risky assets on the market and relying on signals like a 50 EMA breakthrough when making decision is short-sighted, which is why waiting for more substantial indications of trend reversal could be suitable.