Shiba Inu is currently in a position where it needs to break above the 50-day exponential moving average (EMA) in order to shift its momentum from being range-bound to bullish.
The crypto market is currently in a phase of indecision, with prices moving within a range. Bitcoin and other notable assets are not experiencing significant upward or downward movements, as market forces struggle to establish a prevailing trend.
Interestingly, The Crypto Basic recently confirmed that Shiba Inu has a 79% correlation with Bitcoin over the past 30 days. This indicates that SHIB generally follows Bitcoin’s price movements during this period. Therefore, the ongoing market consolidation is also affecting Shiba Inu.
Unfortunately, SHIB has leaned more towards bearish territory lately and has experienced a price dip. This dip has caused Shiba Inu to fall below the crucial 50-day EMA, signaling a shift in mid-term momentum from bullish to bearish. This decline below the 50-day EMA occurred yesterday, with SHIB closing the day at $0.00002427, below the $0.000025 support.
The bearish trend for SHIB began on May 30 after it retested the resistance level at $0.00003. Currently, Shiba Inu has dropped 12% since May 30. However, market analysts have optimistic projections and expect SHIB to reverse the bearish trend. Nevertheless, market data suggests that this will depend on SHIB’s ability to break above the 50-day EMA.
The current pivotal level for SHIB is around $0.00002471. Shiba Inu must confidently close above this price range to successfully end the ongoing bearish trend. Essentially, breaking the psychological threshold of $0.000025 could provide enough strength to the bulls to initiate a trend shift.
However, surpassing $0.000025 is not enough to sustain the uptrend, as observed in previous movements. This is because the support at $0.000025 is currently volatile. SHIB must convert the price territory of $0.00003 from resistance to support in order to maintain the uptrend. Otherwise, the bears could trigger another drop below the 50-day EMA.
Nevertheless, Shiba Inu will face a tough battle in its attempt to recover $0.00003. According to IntoTheBlock data, there is a significant sell wall at this level, with 124,220 addresses holding 92.2 trillion SHIB tokens between $0.000025 and $0.00003. These addresses rush to sell their holdings at breakeven when SHIB tries to breach this level, increasing selling pressure and thwarting the breakout attempt. Shiba Inu would need a resurgence of accumulation to counteract the impact of this selling pressure when it retests $0.00003.
At the current price of $0.00002420, Shiba Inu’s immediate resistance lies at the 38.2% Fibonacci retracement level ($0.00002509). After overcoming this zone, SHIB will face four more resistance points between $0.00002589 and $0.00002926 on its way to $0.00003.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. The views expressed in this article may reflect the author’s personal opinions and do not necessarily represent the opinion of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.