Shiba Inu, the meme coin that has gained one of the strongest communities in the cryptocurrency industry, has recently thrown a peculiar signal into the ring, and it is worth every trader's attention.
The signal in question revolves around the Exponential Moving Average (EMA). Commonly utilized to smooth out price data and generate potential market entry and exit points, EMAs are a staple in the toolkit of many crypto traders.
The recent movement that is causing a stir among Shiba Inu followers is the sudden leap of the 21-day EMA over its 200-day counterpart. This dynamic is not one of the frequently discussed patterns like the celebrated "Golden Cross" or its gloomier sibling, the "Death Cross," but it certainly carries implications worth dissecting.
At its core, when a short-term EMA such as the 21-day surges over a long-term one like the 200-day, it is indicative of a potential uptrend in the short run. Such a pattern might be suggesting that the recent positive price actions are overshadowing the broader, more long-term, trends, hinting at bullish momentum. This could be the green light that traders often seek before making investment decisions.
However, a word of caution is in order. While this Shiba Inu EMA cross is undoubtedly interesting, it is also unconventional. The 21-day EMA is not as frequently referenced as its more popular counterparts, which can lead to varied interpretations. Yet, the sheer fact that it is crossing above the significant 200-day marker makes it noteworthy.
For those tracking Shiba Inu, this particular EMA cross presents an intriguing piece of that puzzle, suggesting that there may be bullish days ahead for the meme coin.