Shiba Inu nearing golden cross, historically linked to potential rallies.
Trading volume declines and reduced whale activity signal caution in demand.
Shiba Inu (SHIB), the second-largest meme-inspired cryptocurrency, is currently trading at $0.00001822, reflecting a 2.6% decline over the past 24 hours. However, despite this short-term dip, SHIB has experienced a remarkable 25% increase over the past month, showcasing its potential for volatility and growth.
Recent analysis indicates that SHIB is nearing its first golden cross since December 2023, with the 50-day and 200-day moving averages converging on the daily chart. This technical indicator has historically preceded significant price movements. For instance, following a similar convergence in early 2023, SHIB saw an impressive 48% surge in the subsequent two weeks.
In the following weeks, the price rebounded, climbing nearly 20%. The formation of this golden cross, while not a guaranteed harbinger of price increases, has often signaled bullish trends for SHIB.
Meanwhile, current trading dynamics show a reduction in whale activity, which may indicate decreased demand. Although SHIB has maintained a bullish outlook, its trading volume has dipped by 6.15%, hinting at potential challenges ahead. The psychological resistance level at $0.00002 remains a significant barrier for bulls, having held firm since June.
SHIB Bulls Can Give a Comeback?
Market indicators such as the Relative Strength Index (RSI) suggest bullish sentiment, while the On-Balance Volume (OBV) presents a less optimistic view, reflecting stagnant demand in October. Investors are closely monitoring the 90-day Shiba Inu Market Value to Realised Value (MVRV) ratio, which, although trending upward, raises concerns over profit-taking.
The upcoming weeks could be crucial for SHIB as it navigates through these volatile conditions. Analysts suggest that the $0.0197-$0.0202 range could be pivotal, potentially leading to a short squeeze if breakout momentum can be sustained. Ultimately, while the outlook remains cautiously optimistic, the market’s inherent volatility calls for careful observation as SHIB approaches this critical juncture.
Highlighted News Of The Day
WazirX Founder Nischal Slams CoinSwitch Allegations as Baseless
share
