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Shiba Inu's Support Test: Is Meme Coin Poised for 12% Climb?

Published 11/16/2023, 08:29 PM
Updated 11/16/2023, 08:30 PM
Shiba Inu's Support Test: Is Meme Coin Poised for 12% Climb?

U.Today - The cryptocurrency (SHIB) is at a critical juncture, according to recent technical analyses. After a formidable rally, SHIB's price is retesting key support levels that could determine its trajectory in the short term. The SHIB/USDT daily chart indicates that the meme coin is consolidating above the 200-day Exponential Moving Average (EMA), a significant dynamic support level that has historically propelled prices higher upon a successful retest​​.

The consolidation around this critical support level at approximately $0.0000084 has been perceived by some as a springboard for future gains, with predictions of a bullish continuation that could result in a 12% surge in the coming weeks​​. This is further supported by SHIB trading above both the 50-day and 100-day moving averages, suggesting a strong uptrend with potential for further growth​​.

The persistence of price above these moving averages and the forming of a potential "golden cross" — a bullish signal where the 50-day moving average crosses above the 200-day moving average — reinforces the prospect of an imminent price rally​​. The golden cross is typically a lagging indicator, but it is regarded by investors as a confirmation of a strong bull market on the horizon.

Adding to the bullish sentiment, the stable Relative Strength (RS) and increased trading activity have been highlighted as favorable conditions for SHIB's potential price rally, suggesting that the coin is demonstrating compelling signs of a bullish breakout that could potentially trigger a substantial surge, estimated at around 12%​​.

Technical patterns and support levels suggest that may indeed be preparing for significant upward movement. While the meme coin market is notoriously volatile and unpredictable, current indicators give a cautiously optimistic outlook for SHIB. Investors and traders will be watching closely for a confirmed breakout above the 200-day SMA, which could signal the start of the anticipated climb.

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Ethereum rally on pause

ETH/USD

The price stabilization comes as Ethereum encounters resistance at $2,136, a critical level where profit-taking by Ethereum whales has been observed. This selling pressure hints at a potential correction but is counterbalanced by positive market developments, such as the filing of a spot Ether ETF by BlackRock (NYSE:BLK), which could significantly strengthen Ethereum's market position​​.

Despite the current hesitation in the rally, Ethereum's fundamental outlook remains robust. The asset has successfully maintained a level above the major resistance at $2,008.08, with analysts suggesting that the bulls are gathering strength for a second rally. Should the bulls overpower the bears at the $2,195.87 resistance, Ethereum could eye a substantial climb, potentially reaching as high as $3,000.27, given the lack of major resistance levels in between​​.

Moreover, the recent involvement of investment giants like BlackRock has contributed to Ethereum's year-to-date high of $2,139, signaling bullish sentiment on the market that could propel the price to $3,100​​. Technical analysis reveals that is trading between its immediate support and resistance levels at $2,014 and $2,112, respectively, further suggesting that the rally could pick up momentum once more if these levels are breached to the upside​​.

The key takeaway from the current price action and market sentiment is that Ethereum is in a consolidation phase, gathering steam for its next move. While there is cautiousness due to the recent rally's pause, the overarching market sentiment is tilting toward optimism, with several factors lining up that could act as catalysts for Ethereum's growth.

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This article was originally published on U.Today

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