Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Dog-themed cryptocurrency Shiba Inu (SHIB) has flashed a key technical signal — a golden cross — on its four-hour chart, fueling optimism among traders and investors.
This bullish crossover occurs when the short-term moving average (typically the 50-period) crosses above the long-term moving average (typically the 200-period), which is frequently seen as a signal of continued upward momentum.
In the last 24 hours, SHIB has increased by 10%, riding the wave of a larger crypto market boom that has lifted several major altcoins. Bitcoin reached a fresh all-time high as investors piled into risk assets and closed short positions.
Over $1.30 billion in crypto positions were liquidated in the last 24 hours, according to CoinGlass. A total of $1.15 billion in shorts accounted for this figure, marking the largest day of short liquidation in four years.
When traders utilize leverage to short a cryptocurrency and the price rises, they buy back from the market to close their bets, pushing the price higher and liquidating more positions.
What's next?
Shiba Inu has increased 20% this month, its strongest performance since November, with prices up more than 10% in the last 24 hours, according to CoinMarketCap data. The gain is consistent with risk sentiment on the cryptocurrency market, with several digital assets recording double-digit gains.
SHIB's impressive month-to-date gain follows a successful defense of the April low at around $0.00001005, indicating the formation of a double bottom pattern on the daily chart. If confirmed, the pattern's resistance is represented by the May high of $0.00001764. A breakout past that level would indicate a significant bull run.
Shiba Inu has broken out of a consolidation range that has held since late May, rising above the daily SMA 50 at $0.0000124. SHIB continues to face a key short-term resistance at the daily SMA 200 of $0.0000149. According to IntoTheBlock, 518.33 trillion SHIB were previously bought by 165,380 addresses in the range between $0.000014 and $0.000019.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team