Shiba Inu (SHIB), Long-term Sideways Trend Ends...Bull Market Transition 'Not Yet'

▲ Shiba Inu (SHIB)

Shiba Inu (SHIB) has broken out of a long-term sideways trend with a surge in trading volume not seen in months. However, a sell-off occurred at the 100-day exponential moving average (EMA), leaving the final confirmation of a trend reversal pending.

According to crypto media outlet U.Today on July 27 (local time), Shiba Inu successively surpassed its 26-day and 50-day EMAs. It then rose to the 100-day EMA near $0.00000504, showing the breakout trend the market had been waiting for.

Trading volume exceeded 2 trillion SHIB, marking one of the largest daily increases in several months. This signals that buying pressure has aggressively returned after weeks of sideways movement. The short-term lower high structure that dominated July's price action was also broken by this rise.

Despite the strong breakout, selling pressure was evident. Immediately after Shiba Inu briefly surpassed the 100-day EMA, selling pressure entered, forming a long upper wick. This indicates that profit-taking activities remain active near that resistance level.

Short-term support levels are the 26-day EMA at $0.00000445 and the 50-day EMA at $0.00000448. If Shiba Inu holds this range, it can consolidate its gains without giving back the entire breakout. The next long-term resistance level is the declining 200-day EMA at $0.000006.

The Relative Strength Index (RSI) rose to around 65 without entering the overbought zone. This analysis suggests there is still room for further upside if buying demand continues. Shiba Inu has moved from a long-term bearish structure into an early recovery phase, with the criterion for confirming a trend reversal being the formation of a daily close above the 100-day EMA.

[Article Key Summary]

-Shiba Inu broke through the 26-day and 50-day exponential moving averages with trading volume exceeding 2 trillion SHIB.

-Profit-taking orders were released near the 100-day exponential moving average at $0.00000504.

-A daily close above the 100-day exponential moving average is required to confirm a long-term upward trend reversal.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*