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This breakout is what SHIB was lacking to enter a proper uptrend. Shiba Inu is finally trading above the key resistance. Its most significant signal since May is the breakout above the 26-day EMA, which occurred at about $0.0000118. Weeks of steadily compressing price action and gaining momentum under resistance preceded this move, which is not just a haphazard spike. If you look closely at the chart, you can see that SHIB has been steadily rising since the low in late June.
The obvious convergence between the 26 EMA and the 50 EMA is particularly significant in this case. Because this convergence indicates a market that is about to take a side amid declining volatility, it frequently comes before stronger directional moves. SHIB's price is currently firmly pushing into this resistance area, validating the change in momentum that traders have been observing.
Volume is also increasing, which is a prerequisite for any long-lasting breakthrough. Stronger closes and steady green candles have been observed over the past few days. SHIB has a lot of room to move before it runs the risk of entering overbought territory because the RSI is currently at 51. What comes next? The $0.0000124-$0.0000130 range is the next significant upward level.
The strength of buyers will be put to the test at this point by the 100 EMA and the prior support/resistance flip zone. The route to the $0.0000145 region opens up rapidly if bulls can keep up their momentum and close above this section with conviction. In general, the cryptocurrency market has changed for the better.
As the Altcoin Season Index begins to rise from all-time lows, Ethereum has surpassed all other altcoins in terms of trading volume, and sentiment is improving across the board. This wider rotation is being followed by SHIB, and the breakout above the 26 EMA highlights traders' renewed willingness to take on risk.
All things considered, Shiba Inu has provided the technical validation that the market has been anticipating since May. A sustained climb rather than just another botched rally attempt could begin if volume and momentum hold.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team