Mon, 3/06/2024 – 10:30
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Shiba Inu has made a substantial return to the market with a bounce off of the 50 EMA, which has been considered a strong support level for the asset. Luckily, SHIB did not let us down and performed the breakthrough many expected from it. However, there are numerous resistances ahead, so relying on a quick move up might not be the wisest decision.
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The blue line or 50-day EMA has served as a dependable level of support, giving SHIB the boost it needed to try a comeback. This rebound gives traders hope for a reversal and the confidence essential to stopping the larger decline that began more than a week ago.
Another encouraging finding from the moving averages is that SHIB is currently trading above the 100-day EMA. Being above the 100 EMA, which frequently serves as a midterm trend indicator, may indicate that the overall trend is possibly turning more bullish.
Still, the 50 day EMA is above the current price and may serve as a level of resistance in the near future. There has been an increase in trading activity during the recent price movements, as indicated by the trading volume bars.
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This surge in volume can indicate intense market interest and frequently follows notable price changes. But in order to overcome the current barriers and experience a prolonged upward trend, SHIB requires a steady high volume.
Furthermore, the RSI displays a value of 50. There is potential for movement in either direction because SHIB appears to be in a neutral zone, neither overbought nor oversold. An increase toward 70 on the RSI may indicate overbought conditions. For now, SHIB is located in the middle and is unlikely to give us any kind of hint about the upcoming move.
