The
Shiba
Inu
(SHIB)
price
has
exhibited
a
notable
increase,
rising
by
6.5%
in
the
last
24
hours
and
12.5%
over
the
past
week,
marking
a
significant
shift
towards
bullish
momentum.
Technical
analysis
of
the
daily
SHIB/USD
chart
reveals
a
descending
trend
line
where
price
has
been
rejected
on
every
single
daily
close
for
the
past
two
months.

However,
today’s
price
movements
have
led
to
a
shift.
The
descending
trend
line
that
previously
governed
Shiba
Inu’s
downward
trajectory
has
recently
been
breached,
suggesting
a
potential
reversal
or
at
least
a
weakening
of
the
bearish
pressure.
Renowned
crypto
analyst
Cold
Blooded
Shiller

 

remarked,
“One
of
the
commandments
of
memes
is
thou
shalt
always
long
the
meme
when
the
trendline
snaps.”

One
of
the
commandments
of
memes
is

thou
shalt
always
long
the
meme
when
the
trendline
snaps

pic.twitter.com/iPDpuX46ZH

—
Cold
Blooded
Shiller
(@ColdBloodShill)

May
4,
2024

Prior
to
the
breakout,
he
noted,
“In
20IQ
szn
you’re
looking
for
20IQ
entry
signals.
Breaking
the
trendline
that
has
been
respected
on
every
single
daily
close
for
the
past
2
months
will
be
one
of
those.
SHIB
starting
to
tick.”

Related
Reading

The
shift
is
supported
by
the
positioning
of
Exponential
Moving
Averages
(EMAs);
the
20-day
EMA
at
approximately
$0.00002238
and
the
50-day
EMA
at
$0.00002131
which
were
both
breached
with
yesterday’s
daily
close.

Further
down,
the
100-day
and
200-day
EMAs
at
around
$0.00001831
serve
as
significant
support
zones,
indicating
strong
buy
levels
should
any
major
retracement
occur.
The
interaction
of
price
with
these
EMAs
in
the
coming
days
will
be
crucial
in
determining
the
sustainability
of
the
current

breakout.

The
application
of
Fibonacci
retracement
from
the
recent
peak
to
the
trough
are
also
illustrating
a
pivotal
development
for
Shiba
Inu’s
price
action.
The
0.236
Fibonacci
retracement
level
at
$0.00002483,
recently
surpassed
in
yesterday’s
trading
session,
now
serves
as
a
critical
support
in
the
short
term.

 

This
level’s
importance
is
accentuated
by
its
role
in
confirming
the
legitimacy
of
the
recent
breakout
from
the
descending
trend
line—a
breakout
that
might
otherwise
be
dismissed
as
a
mere
technical
anomaly
or
‘fakeout.’

Currently,
a
retest
of
this
$0.00002483
level
as
support
is
underway.
A
closure
of
today’s
daily
candle
above
this
mark
would
solidify
the
argument
for
a
more
sustained
upward
trajectory
in
SHIB’s
price.
Such
a
close
would
reinforce
investor
confidence
that
the
breakout
is
genuine
and
that
the
market
sentiment
may
be
shifting
more

firmly
to
the
bullish
side.

Related
Reading

If
SHIB’s
price
remains
steadfast
above
this
newfound
support,
the
immediate
subsequent
target
would
be
the
$0.00002882
level,
correlating
with
the
0.382
Fibonacci
retracement.
A
breach
of
this
resistance
would
likely
set
the
stage
for
further
gains
towards
$0.00003205
and
$0.00003527,
the
0.5
and
0.618
Fibonacci
retracement
levels,
respectively.

Reaching
the
0.618
level,
often
referred
to
as
the
‘golden
ratio,’
could
potentially
yield
a
substantial
40%
gain
from
current
prices,
offering
a
lucrative
scenario
for
investors
closely
monitoring
these
technical
cues.

 

The
heightened
trading
volume
(+30%
in
the
last
24
hours)
underlines
active
participation
in
the
market,
crucial
for
supporting
the
legitimacy
of
the
breakout.
Alongside,
the
Relative
Strength
Index
(RSI)
at
55.05
indicates
that
the
asset
is
neither
overbought
nor
oversold,
leaning
towards
a
neutral
to
slightly
bullish
position.
This
provides
room
for
upward
movement
without
immediate
concerns
of
entering
overbought
territory.

Overall,
with
the
recent
breakout
above
the
descending
trend
line,
Shiba
Inu’s
price

action
invites
a
bullish
outlook,
suggesting
that
the
downtrend
may
be
losing
its
grip.
The
key
for
traders
will
be
to
watch
for
a
daily
close
above
$0.00002483.
A
confirmed
hold
above
this
level
could
pave
the
way
for
further
ascents
towards
higher
Fibonacci
levels.

Featured
image
from
Shutterstock,
chart
from
TradingView.com

Go to Source
Author: Jake Simmons

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