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At the moment, Shiba Inu is trapped in a narrow and crucial area that may determine its next major move, which could be a quick decline or an upward breakout. SHIB is wedged between major moving averages on the daily chart, which creates a situation akin to a pressure cooker that has historically resulted in high volatility.
At the moment, SHIB is trading in the $0.00001450 zone, which is marginally above both its 100-day and 50-day moving averages. At about $0.00001595, the 200-day moving average is looming directly above, serving as a strong barrier that SHIB has been unable to successfully overcome on several occasions.
Stuck between levels of support and resistance, the price has been consolidating in a sideways structure for some time. Because the volatility is being compressed by this sideways grind, traders are becoming impatient for a breakout. While a failure to maintain above the 50 and 100-day moving averages could swiftly pull SHIB back toward the $0.00001250 support zone, a move above the 200-day moving average might pave the way for a retest of $0.000018.
Because neither buyers nor sellers have taken charge, volume has been comparatively low, suggesting that the market is unsure. The notion that SHIB is in limbo is supported by the fact that the RSI is currently at 51, which is neutral territory. SHIB is vulnerable to the mood of the larger market in this situation.
SHIB might surge toward its next resistance zone if there is a clear breakout, which would rekindle bullish sentiment. On the other hand, SHIB will probably plunge lower if the moving averages are not held, setting off a chain reaction of stop-losses. For the time being, traders should pay particular attention to the 50/100-day averages below and the $0.00001595 mark. The pressure is increasing, and SHIB will probably take quick and forceful action in either direction. Hold on tight.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team