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Luckily for Shiba Inu supporters, the asset has decisively bounced off the $0.000012 level, demonstrating renewed strength. The 50-day exponential moving average (EMA), one of the most important short-term trend indicators that we should be monitoring closely, was strongly defended during this rebound.
Squeeze incoming?
With the move SHIB is in an intriguing technical position, trading in a narrow range between the 100 EMA serving as immediate resistance and the 50 EMA serving as support. This configuration may be forming within a symmetrical triangle pattern and is starting to resemble a possible price squeeze. Triangles typically occur before spikes in volatility, and breakouts typically follow the current trend.
In the case of SHIB, this implies that if momentum keeps increasing, the next big move may be bullish. In addition, there has been a discernible increase in short-term trading volume. Volume increases have coincided with upward pushes over the last few sessions, indicating rising buyer participation at these levels. The $0.000014 resistance zone, which has capped rallies several times in recent weeks, may be the catalyst for a challenge if this activity continues.
SHIB Isn't Easy
But there are challenges on the way up. Just below $0.0000135, the 100 EMA is still a significant barrier that SHIB needs to decisively close above in order to establish bullish dominance. The next significant test will probably be at the $0.000014 level after that since a breakout above it might pave the way for $0.000015 and higher.
Retesting the $0.0000118-$0.0000115 support area could expose SHIB to additional downside if the 50 EMA is not held close to $0.000012. For the time being, the combination of the strengthening 50 EMA support increasing short-term volume and the emerging squeeze pattern leans sentiment in favor of the bulls.
A break above the 100 EMA, which might pave the way for a push toward $0.000014 in the upcoming sessions, is what traders will be closely monitoring.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team