The meme coin Shiba Inu, which has one of the largest communities in the cryptocurrency market, just sent out a strange signal that should get the attention of all traders.
The exponential moving average (EMA) is the centre of gravity for the signal in question. EMAs are a common tool in the toolbox of many cryptocurrency traders since they can be used to smooth out price data and produce probable market entry and exit points.
The abrupt crossing of the 21-day EMA over its 200-day equivalent is the current trend that has Shiba Inu enthusiasts on edge. Although this dynamic is not a well-known pattern like the renowned “Golden Cross” or its gloomier twin, the “Death Cross,” it undoubtedly has ramifications that are worth investigating.
Fundamentally, it indicates a probable short-term upswing when a short-term EMA, like the 21-day, outperforms a long-term EMA, such the 200-day. Such a pattern may indicate that recent bullish momentum is being driven by favourable price movements that are obscuring larger, longer-term tendencies. This may be the approval that investors frequently seek from traders before making a choice.
A word of caution is necessary, though. This Shiba Inu EMA cross is certainly intriguing, but it’s also unusual. The 21-day EMA is used less frequently than its more well-known competitors, which might result in different interpretations. However, the simple fact that it has passed the important 200-day threshold is notable.
This specific EMA cross gives an intriguing piece of the jigsaw for those keeping watch of Shiba Inu, indicating that the meme currency may have some bullish days in the future.
