Shiba Inu Comes Closer to 50-Day Trend Resistance as Whale Holdings Reach $2 Billion

Shiba

Shiba has reached important resistance it has to break to continue current rally

Shiba Inu continues its recovery that began on December 20 and has not achieved more than 30% growth in recent days. But growth could be over if the asset fails to break through this technical resistance.

50-Day Exponential Moving Average

One of the first significant resistances on Shiba Inu’s path is the 50-day exponential moving average, which is the average movement of the asset in the last 50 days. Whenever the price trades above the line, its movement is considered bullish.

If the price only hits the aforementioned line, it could act as a point of resistance as this is the point that determines whether or not an asset changes its mid-term trend. In Shiba’s case, the 50-day EMA previously sent him into a deep short-term corrective state that resulted in a 25% loss.

Whales support rally

According to data provided by WhaleStats, the USD value of whale-tier holdings has reached $2 billion. The last time holdings of whale-tier wallets reached the same number was before the 70% correction that took place on Shiba Inu from the end of October until Dec. 20.

After the first signs of a recovery appeared on the Shib chart, the large Ethereum wallets began to provide enough purchasing power to further support the recovery. The purchase volume of Shiba Inu tokens reached over $ 100 million in the early days of the recovery.

At press time, Shiba Inu is trading at $0.00003841, sitting right above the 50 EMA resistance that, as yet, does not indicate that the asset successfully broke it. The resistance could be considered breached as soon as the token gets sealed above the line and trades for at least a couple of days without consistently touching it.

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