SHIB Technical Analysis: Doge-Killer Breaks the Highly Influential Resistance Trendline: Should You Join the Rally?
Although it is widely believed that meme-like coins such as SHIB are only driven by hype and sentiment, the SHIB ecosystem actually has a variety of useful tools, such as NFTs and a Defi platform on ShibaSwap.
ShibaSwap aims to offer an environment that is secure for trading in cryptocurrency and to remain independent of any central authority.
In the latest news, the community finds acceptance in the real world as ‘A Gig Harbor,’ Washington-based real estate developer, accepts payment in Shiba.
Let us move ahead to read about Shiba Inu technical analysis.
Past Performance of SHIB
SHIB coin price rose more than 15% in the past 24 hours, resulting in a bullish engulfing candle that broke above the long-coming resistance trendline. The trendline breakout puts an end to the long correction phase started on 28th October.
Under the influence of the long-coming resistance trendline, the coin price decreased by more than 75%. Therefore, the breakout marks a solid bullish milestone.
SHIB Technical Analysis
The SHIB coin price action shows an increase in the buying pressure evident by the 100% jump in the intraday trading volume. That is why the increasing bullish commitment showcases the high possibility of a bull run.
The crucial EMAs (50, 100, and 200) keep a positive alignment despite a 75% fall in coin price. The price action finds support near the 200-day EMA but remains under the 50 and 100-day EMAs. The breakout of these EMAs will unleash the trapped bullishness.
The RSI indicator at 48% flattens below the central line after a bullish crossover with the 14-day SMA. The rising slope indicates growth in underlying bullishness that can drive the price higher soon.
The MACD indicator shows a spark in the MACD line as it crosses above the signal line in the daily chart. The last two dips generate a bullish divergence reflecting the rise in underlying bullishness.
In a nutshell, the SHIB coin price action suggests a post-breakout bull run with the support of technical indicators giving a buy signal.
Upcoming Trend
The enormous rise in buying pressure and a history of phenomenal returns within a short time increases the chances of a bull run for the SHIB coin. Therefore, a bull run to the previous heights is possible, if the prices sustain above the resistance trendline.
The price action indicates resistance levels at $0.000040 and $0.000050 after the primary resistance at 50-days EMA. The support levels are at $0.000025 and $0.000020 which can halt a downfall if the price fails to sustain.