- Shiba Inu (SHIB) is showing promising signs of a price recovery, but investors are advised to remain cautious due to potential obstacles ahead.
- Recently, SHIB managed to break through the 26-day Exponential Moving Average (EMA), indicating some buying interest at lower price levels.
- However, the real test lies ahead at the 50-day EMA, which SHIB is currently approaching and has acted as a strong resistance in the past.
Shiba Inu shows signs of a price comeback, but the road ahead is filled with challenges. The crypto coin recently broke through the 26-day EMA, but the real test lies at the 50-day EMA.
Shiba Inu Breaks Through 26-Day EMA
SHIB has managed to break through the 26-day Exponential Moving Average (EMA), a technical indicator used to assess short-term price trends. This breakthrough is a positive signal, indicating some buying interest at lower price levels. However, the real test lies ahead at the 50-day EMA, which SHIB is currently approaching. This level has acted as a strong resistance in the past, and a convincing break above it could signal a stronger shift on the market.
Challenges Ahead: 50-Day EMA and Low Trading Volume
The journey to the next target of around the $0.00003 mark is filled with uncertainty, mainly due to the lack of trading volume on the market. The volume on SHIB’s chart is notably low, suggesting a lack of strong conviction behind recent price movements. Low volume often correlates with low volatility, indicating that the price could remain within a narrow range for some time. Additionally, the Relative Strength Index, currently moving toward 60, does not yet confirm a strong bullish trend.
Key Support and Resistance Levels
Key support and resistance levels to watch include the recent low around $0.000021 and the aforementioned 50-day EMA near $0.000025. These levels will likely pave the way for the asset in the foreseeable future.
Conclusion
While SHIB’s recent progress in breaking the 26-day EMA is bringing back hopes, it is too early for its holders to start celebrating. The upcoming challenge at the 50-day EMA, coupled with low trading volume, paints quite a grim picture for the asset’s future. Investors are advised to remain cautious and keep a close eye on these key levels.
