Shiba Inu (SHIB) has recently fallen below the important 50-day exponential moving average (EMA), signaling a shift in momentum from bullish to bearish. In order to reverse this bearish trend, SHIB needs to confidently close above the 50-day EMA.
Currently, Shiba Inu faces a significant sell wall at the $0.00003 level, with 124,220 addresses holding 92.2 trillion SHIB tokens. The cryptocurrency market as a whole is experiencing a period of indecision, with prices moving within a narrow range. This has resulted in prominent assets like Bitcoin (BTC) struggling to establish a clear trend.
While the broader market remains undecided, SHIB has shown a stronger inclination towards bearish territory. The recent price dip has caused Shiba Inu to fall below the critical 50-day EMA, indicating a shift in mid-term momentum. Yesterday, SHIB closed at $0.00002427, below the $0.000025 support level.
The bearish trend for SHIB began on May 30 when it retested the resistance at $0.00003. Since then, Shiba Inu has experienced a 12% drop in price. Despite the current bearish sentiment, market analysts are optimistic about SHIB’s potential for a trend reversal. However, this reversal is dependent on SHIB’s ability to surpass the 50-day EMA.
To effectively end the bearish trend, Shiba Inu needs to breach and sustain above the pivotal 50-day EMA, which is currently around $0.00002471. Closing above this price level could provide the bulls with the strength needed to reverse the trend. However, historical price movements suggest that simply pushing above $0.000025 may not be enough to sustain the uptrend, given the fragile support at this level.
In order to ensure the continuation of the uptrend, SHIB must transform the $0.00003 resistance level into support. Failure to do so could expose Shiba Inu to the risk of another bearish slip below the 50-day EMA.
