Disclaimer: The results of the following analysis are the author’s opinions only and should not be considered investment advice
(For brevity, SHIB prices are multiplied by 1000 from here on out.)
When the EMA strips stretched too much while looking south, sellers pulled Shiba Inu [SHIB] Towards the $0.00738 area after the previous downside wave. This multi-year support has helped buying efforts to drive a much-needed upward trend on the strips.
The recovery of the dog-themed coin hit the $0.01217 ceiling as buyers gradually increased their pressure.
An alternate EMA bullish flip could help find a break above the $0.012 level in the upcoming sessions. At the time of writing, Chip’s stock is trading at $0.01206.
Daily Sheep Chart
The recent growth of the altcoin has seen a classic back-and-forth movement between buyers and sellers in the Point of Control (POC, marked in red) area. This high liquidity sign has ensured more stable tops for more than seven weeks now.
With the continuous growth in the last 25-day lows and flat tops, SHIB revealed an ascending triangle on the daily time frame. This pattern showed a fundamental boost in purchasing power. To achieve this, a bullish cross on the 20/50 EMA further supports the bullish edge.
Buyers will be eager to break out of the $0.012 area. Given the excessive pressure on cryptocurrencies over the past month, SHIB could enter a phase of high volatility in the coming days. A break above the immediate ceiling could help the alternative to test the $0.01382 area.
By contrast, any reversals are likely to see a pullback towards the $0.0104 region before a recovery.
After struggling to capture the 59 mark several times, the RSI flashed with a slight bullish edge. To increase the chances of a potential price breakout, you should find a convincing close that goes beyond the resistance level.
However, CMF lost its zero mark support and revealed a sell feature. However, recent bottoms have contrasted upwards with the price.
Moreover, the Aroon Up (yellow) line maintained its position above the Aroon Down line (blue) to confirm a slight bullish edge. To maintain the bullish edge, the upper Aroon line should see a bounce from the 42-50% support range.
Given the ascending triangle setup along with the uptrend of the EMA bars, SHIB could be on the brighter side of a potential breakout. The objectives will remain as discussed.
However, the alternative shares a 90% 30-day correlation with Bitcoin. Hence, keeping an eye on the movement of Bitcoin along with the general market sentiment will be essential to make a profitable move.