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Recently Shiba Inu broke through important resistance levels and the pivotal 200 EMA continuing its fantastic bullish run. As of the most recent daily close, SHIB has made a noteworthy breakout, reaching $0.00001548.
Nevertheless, underlying indicators point to the possibility of a short-term top forming even though the price action appears strong. With the Relative Strength Index (RSI) currently hovering around 78, well into overbought territory, it is the most obvious warning indicator. As the market cools off, these levels typically come before pullbacks or times of sideways consolidation.
Just below the $0.000016-$0.000017 range, which served as support prior to the March breakdown and may now turn into a profit-taking zone, SHIB is also approaching a zone of prior resistance. It is not entirely pessimistic, though. In addition to validating a trend reversal structure, the breakout above $0.0000145 has invalidated the longer-term downtrend.
The case for sustained upward momentum in the medium term is supported by the golden crossover of important moving averages, particularly the 50 and 100 EMAs. This is especially true if SHIB maintains above $0.000014 on a retest. What does SHIB's future hold? Bulls could continue the rally toward the next significant resistance level, which is around $0.0000185, if they can keep control and the volume stays high.
A decline toward $0.000014 or even the $0.000013 support zone is likely, though, if momentum wanes and profit-taking quickens. As a result, RSI would have time to cool down and prepare for a healthier future. In summary, traders should prepare for potential short-term volatility, even though SHIB's explosive run is not necessarily over.
Assuming SHIB does not fall back below the 200 EMA, the price has probably moved into the latter part of its current rally cycle, but the overall trend might change sooner than later, especially if SHIB does not enter a stabiliization period.
Vladislav Sopov
U.Today Editorial Team