Disclaimer: The results of the analysis below are the author’s sole opinion and should not be considered investment advice
(For brevity, the SHIB price is multiplied by 1,000 from here).
Sellers pull up on Shiba Inu as EMA ribbon overextended as it looks south [SHIB] Heading towards the $0.00738 area after the previous bear market. This multi-year support aided the buying effort, driving a much-needed bullish flip on the ribbon.
The recovery of the dog-themed coin collided with the $0.01217 ceiling, while buyers gradually increased the pressure.
A bullish reversal of the EMA ribbon could help the alt break the $0.012 level in the coming sessions. At press time, SHIB is trading at $0.01206.
SHIB daily chart
The recent growth of altcoins has witnessed a classic back-and-forth between buyers and sellers in the point of control (POC, red) zone. This high liquidity mark has ensured a flat peak for more than seven weeks.
With troughs continuing to grow and gentle peaks over the past 25 days, SHIB is showing an ascending triangle on the daily time frame. This pattern indicates a potential boost in purchasing power. On top of that, a bullish crossover at the 20/50 EMA further confirms the bullish dominance.
Buyers will be keen to break the limits of the $0.012 area. Looking at the over-squeezing of altcoins over the past month, SHIB may enter a high volatility phase in the coming days. A breakout of the immediate upper limit could help the alt test the $0.01382 area.
Conversely, any reversal could see a pullback to the $0.0104 area before a recovery.
The RSI is showing a slight bullish advantage after multiple efforts to break above the 59 mark. To increase the chances of a potential price breakout, it must find a convincing close outside the resistance level.
However, CMF lost support at the zero mark and showed a selling advantage. Even so, its most recent trough showed a bullish divergence from the price.
Also, Aroon’s rise (yellow) is holding above the Aroon’s fall (blue), underscoring a slight bullish edge. To maintain the bullish dominance, the Aroon advance should ideally bounce off the 42-50% support range.
Given the ascending triangle setup next to the bullish flip on the EMA band, SHIB could be on the bright side of a potential breakout. The goals will remain the same as discussed.
However, alt has a 90% 30-day correlation with Bitcoin. Therefore, keeping a close eye on the movements of Bitcoin and the overall market sentiment is crucial to making profitable moves.