u.today
Shiba Inu is showing signs of a comeback on its price charts. However, investors should temper their excitement as the road ahead still presents significant challenges.
Recently, SHIB managed to break through the 26-day Exponential Moving Average (EMA), a technical indicator used to assess short-term price trends. This breakthrough is a positive signal, indicating some buying interest at lower price levels.
However, the real test lies ahead at the 50-day EMA, which SHIB is currently approaching. This level has acted as a strong resistance in the past, and a convincing break above it could signal a stronger shift on the market.
If SHIB successfully surpasses the 50-day EMA, the next target could be around the $0.00003 mark. This price point is a psychological resistance and a previous area of consolidation for traders. However, the journey to this level is filled with uncertainty, mainly due to the lack of trading volume on the market.
The volume on SHIB's chart is notably low, suggesting a lack of strong conviction behind recent price movements. Low volume often correlates with low volatility, indicating that the price could remain within a narrow range for some time. Additionally, the Relative Strength Index, currently moving toward 60, does not yet confirm a strong bullish trend.
Key support and resistance levels to watch include the recent low around $0.000021 and the aforementioned 50-day EMA near $0.000025. These levels will likely pave the way for the asset in the foreseeable future.
While SHIB's recent progress in breaking the 26-day EMA is bringing back hopes, it is too early for its holders to start celebrating. The upcoming challenge at the 50-day EMA, coupled with low trading volume, paints quite a grim picture for the asset's future.