Shiba Inu Hovers Just Below 100-Day Moving Average... "If the 50-day line collapses, it's back to the quagmire"

▲ Shiba Inu (Shiba Inu, SHIB)/AI generated image

Shiba Inu (SHIB)'s surge has faltered in front of a key resistance level. Whether it breaks through $0.000005 will determine the sustainability of the recent rebound.

According to U.Today, a cryptocurrency specialized media outlet, on August 4 (local time), Shiba Inu formed its strongest bullish candle in weeks with a surge in buying volume on the daily chart. The price successively crossed several resistance lines, and the RSI (Relative Strength Index) temporarily broke through 70, an overbought zone.

After the surge, the upward momentum cooled somewhat. The Relative Strength Index dropped to the high 50s, but no significant selling pressure appeared. As the excessive upward pressure eased, the price held its ground, improving the technical trend compared to previous rebound attempts.

Shiba Inu overcame a multi-month downtrend and rose above the 26-day and 50-day Exponential Moving Averages (EMA). The downward slope of both moving averages also began to flatten. However, the 100-day Exponential Moving Average at $0.000005 remains the strongest resistance. The price has been consolidating just below this level, but no clear breakout has occurred.

A daily close above the 100-day Exponential Moving Average would signify more than just a simple resistance breakout. As Shiba Inu recovers all short-term moving averages, the market structure could shift towards a bullish trend. If additional buying pressure enters, the 200-day Exponential Moving Average, which maintains a downward slope, will become the next target.

The key to a breakout is volume. While trading volume significantly increased during the recent surge, subsequent buying interest has weakened. If trading volume increases again, the likelihood of breaking the 100-day Exponential Moving Average rises. Conversely, if it falls from the current level, the 50-day Exponential Moving Average becomes the first support. If even that support line collapses, the recent rise will remain a short-term rebound that ended within a long-term downtrend.

[Article Key Summary]

-Shiba Inu broke through several resistance lines based on strong buying volume, but its upward momentum slowed down in front of the 100-day Exponential Moving Average located at $0.000005.

-The RSI surpassed 70 and then dropped to the high 50s, alleviating overbought pressure without significant selling.

-Breaking the 100-day Exponential Moving Average requires an increase in trading volume; failure to do so could lead to a drop to the 50-day Exponential Moving Average.

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