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Shiba Inu is making an effort to recover, but the chart does not allow for much misinterpretation. This is not breakout momentum, and there is very little chance that SHIB will break through its important resistance levels at this time. Yes, the price is rising, but the main issue is that it is pushing into resistance without any significant volume to support it. Breakouts are caused by conviction, liquidity and buying pressure rather than hope. SHIB does not have any of those at the moment.
Shiba Inu's price region
The asset is positioned directly beneath the 20-EMA, 50-EMA and 100-EMA, a compressed cluster of declining moving averages. All three are still sloping downward, which is indicative of a more general trend that is still clearly negative. Even if SHIB is successful in tagging the $0.0000095-$0.0000100 region, it will still encounter a wall that has repeatedly rejected it over the past three months.
But the real story is revealed by volume. It has been weaker over the past few sessions than nearly every other attempt at a breakout this year. One thing is clear from that level of participation: no one is actively intervening. In the absence of new inflows, SHIB is unable to produce the impulse needed to break out of its decline. As liquidity dries up, we are essentially witnessing a weary market oscillating inside a bearish structure.
Although there is a slight increase in RSI from oversold conditions, this is typical of all relief bounces. Nothing in the momentum profile points to a change in trend strength or prolonged accumulation.
Negative scenario
One of two possible outcomes should be anticipated by investors. The most likely outcome is a stalled rally. SHIB tries to break through, pushes a little higher, taps the EMAs and then reverts to the slow-bleed pattern. With a deeper retest, SHIB may easily return to $0.0000080 or lower if it loses its short-term higher lows, particularly if Bitcoin cools or overall risk appetite diminishes.
It would be generous to refer to this setup as a breakout attempt. In the near future, SHIB’s chances of breaking out are essentially 0% absent a spike in volume. Investors seeking genuine bullish signals should wait for reclaimed EMAs or volume spikes, neither of which are currently present.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team