Shiba Inu (SHIB) has seen a strong breakout, soaring 36% in the last 24 hours and reaching a five-month high. The meme coin’s impressive rally has reignited bullish sentiment among investors, but the possibility of a correction due to profit-taking remains a key risk. With the Shiba Inu community feeling optimistic, the real test for SHIB will be its ability to sustain this growth amid market pressures and resistance levels.
One of the standout technical signals for Shiba Inu is the appearance of a Golden Cross. This pattern occurs when the 50-day Exponential Moving Average (EMA) crosses above the 200-day EMA, signaling a shift in momentum. The Golden Cross typically marks the end of a downtrend and the beginning of a new uptrend, and it has historically been followed by further price appreciation. For Shiba Inu, this cross reverses the earlier “Death Cross” seen three months ago, which had suggested prolonged bearish pressure.
The Golden Cross has proven to be an important indicator, often attracting new investor interest and reinforcing the bullish sentiment. As SHIB trades above these key moving averages, it signals the potential for further upside, provided it can hold support and avoid significant profit-taking by traders.
While Shiba Inu’s breakout has energized investors, there are concerns over profit-taking pressures. Data shows that approximately 30% of SHIB holders are currently in profit, and these investors are often more inclined to sell their holdings when prices rise. If a significant number of these holders choose to take profits, it could lead to downward pressure on SHIB’s price, potentially halting its uptrend.
This tendency for profit-taking may create challenges for SHIB, especially as it moves toward critical resistance levels. The key to sustaining its current bullish momentum will be the continued support from long-term holders and new investors, preventing selling pressure from overwhelming buying interest.
Currently trading at $0.00002583, Shiba Inu is eyeing a move toward the critical resistance level of $0.00002976. This price point has historically been a tough barrier for SHIB, and if the coin struggles to break through this level once again, it could face a retracement back to the support level at $0.00002267.
If SHIB successfully flips the $0.00002976 resistance into support, it could target the $0.00003000 level, a psychologically significant price point that would further bolster its bullish outlook. However, failure to break through the $0.00002976 level could lead to a pullback and a retest of lower price ranges. A move below $0.00002267 would invalidate the current bullish trend and suggest a potential shift in market sentiment.
If SHIB experiences a retracement to lower levels, it would test the resilience of the recent rally and investor confidence. While the Golden Cross and recent bullish momentum are promising, the ability of Shiba Inu to hold key support levels and maintain buying pressure will determine whether it can sustain its recent gains.
A significant pullback or failure to break resistance levels could signal the end of SHIB's rally, prompting caution among investors and possibly leading to further losses. Conversely, a successful break above resistance could signal a continuation of the bullish trend, potentially leading SHIB to new highs in the short term.
Shiba Inu’s 36% surge has brought renewed optimism to the meme coin, but sustainability will be the key factor in determining its future price action. The Golden Cross is a positive technical signal, but profit-taking pressures and resistance at key price levels could pose risks to its upward momentum. As SHIB approaches critical resistance at $0.00002976, the market will closely watch whether it can maintain its bullish trend or face a pullback.
With market sentiment and investor behavior playing a crucial role, the next few days will be critical for Shiba Inu. If the meme coin can hold strong and continue its uptrend, SHIB could continue to impress. However, any failure to break resistance or a sudden surge of selling pressure could lead to a correction, making it essential for investors to monitor key support and resistance levels carefully.
November 2024, Cryptoniteuae