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Even if the market as a whole is still cautious, Shiba Inu is subtly establishing a pattern that might lead to a brief retracement. When the 50 EMA (blue) edges higher and gets ready to cross above the 200 EMA (black), a golden cross is forming on the hourly chart. This well-known technical indicator frequently signals the beginning of a bullish phase or at the very least a relief rally as traders start to move ahead of what they believe to be a change in momentum.
Over the last 48 hours, SHIB has strengthened with steadily increasing volume, rising to $0.00001160 after recovering from the $0.00001100 USDT support level. The RSI has risen close to 60, indicating that momentum is currently tilting in favor of the bulls. Though this configuration may lead to further gains, it's crucial to maintain perspective. SHIB continues to appear trapped in an extended downturn on the daily chart.
All three of the higher time frame moving averages, the 200 EMA, 100 EMA and 50 EMA (blue) continue to function as layered resistance above the current price. In other words, SHIB would still need to grind through several ceilings before any genuine recovery could be verified even if this golden cross materialized.
Expectations should be moderated by the contrast between the daily inertia and the hourly optimism. Although golden crosses frequently lead to local rallies and short squeezes, this is probably going to be a short-term move rather than the beginning of a new trend unless buying volume picks up speed and SHIB clearly breaks above the group of daily EMAs around $0.00001350-$0.00001500.
The hourly golden cross is a technical development that is favorable and may offer traders a chance to capture a retracement toward higher resistance areas. Investors should maintain a realistic perspective though, as SHIB still has a long way to go before breaking out of its more general bearish structure. A brief rebound should not be interpreted as a confirmed reversal, instead, manage risk appropriately.
Vladislav Sopov
U.Today Editorial Team