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▲ Shiba Inu (SHIB)
Shiba Inu (SHIB) is attempting to break through a major resistance line. With strong overhead selling pressure, there is a fierce battle over whether the upward momentum can be sustained. While the token has crossed both short-term and long-term moving averages on the daily chart, its ability to settle above a key supply zone is being tested.
According to U.Today, a virtual asset media outlet, on September 23 (local time), Shiba Inu surged to around $0.000627 before being pushed back by selling pressure and is now trading around $0.000602. The token price is above all short-term moving averages on the daily chart and also above the downward-sloping long-term moving average located near $0.00000560.
Trading volume significantly increased during the breakout phase, adding to its technical importance. The Relative Strength Index (RSI) also rose in tandem to the mid-to-high 60s, just before the overbought zone, proving strong momentum. However, it has already encountered selling pressure in the $0.00000620 to $0.00000630 range. This range is considered a key short-term resistance line, coinciding with major resistance supply zones from May and August. Analysis suggests that if the daily closing price settles above $0.00000630, the upside could open up to $0.00000650 to $0.00000670.
Conversely, the range of $0.00000560 to $0.00000570, where the long-term moving average overlaps with the recent breakout zone, acts as a critical support line. If this price level is maintained, a new bullish structure will be sustained. However, if the price falls below this support line, there is a higher possibility that this rebound will turn out to be a false breakout rather than a trend reversal.
Market attention is focused on whether Shiba Inu will break through the key resistance line and recover to its pre-May crash levels, or if it will end as a false breakout due to profit-taking.
[Key Takeaways]
-Shiba Inu (SHIB) is trading around $0.000602, surpassing its short-term and long-term moving averages.
-With increased trading volume, RSI reached the mid-to-high 60s, but it faces resistance at $0.00000620-$0.00000630.
-A breakout above $0.00000630 could open further upside, but failure to hold support at $0.00000560 poses a risk of a false breakout.
*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.*
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