According to U.Today, Shiba Inu has made a significant comeback in the market, bouncing off the 50-day Exponential Moving Average (EMA), a level that has been seen as a strong support for the asset. The cryptocurrency did not disappoint and made the anticipated breakthrough. However, there are several resistances ahead, suggesting that a rapid upward move may not be the best strategy.
The 50-day EMA, represented by the blue line, has acted as a reliable support level, providing Shiba Inu with the necessary boost to attempt a comeback. This rebound has given traders hope for a reversal and the necessary confidence to halt the larger decline that started over a week ago.
Another positive observation from the moving averages is that Shiba Inu is currently trading above the 100-day EMA. Being above this level, which often serves as a midterm trend indicator, could suggest that the overall trend is potentially becoming more bullish.
However, the 50-day EMA is above the current price and could act as a resistance level in the near future. The recent price movements have seen an increase in trading activity, as shown by the trading volume bars. This surge in volume could indicate strong market interest and often follows significant price changes.
To overcome the current barriers and sustain a prolonged upward trend, Shiba Inu needs a consistently high volume. Additionally, the Relative Strength Index (RSI) shows a value of 50, indicating that Shiba Inu is in a neutral zone, neither overbought nor oversold. A move towards 70 on the RSI could suggest overbought conditions. For now, Shiba Inu is in the middle and is unlikely to provide any clear indication of the next move.