Shiba Inu is showing signs of a comeback on its price charts. However, investors should temper their excitement as the road ahead still presents significant challenges.
Recently, SHIB managed to break through the 26-day Exponential Moving Average (EMA), a technical indicator used to assess short-term price trends. This breakthrough is a positive signal, indicating some buying interest at lower price levels.
But the big test is still to come, as SHIB is now getting close to the 50-day EMA. This level has historically served as a formidable barrier, and a big break over it may herald a more significant change in the market.
The next goal, if SHIB is able to overcome the 50-day EMA, may be at or near $0.00003. For traders, this price position represents a psychological barrier and a past place of consolidation. But getting to this point is a risky business, mostly because there isn’t much market activity.
Notably low volume on SHIB’s chart indicates that there hasn’t been much confidence behind recent price swings. Low volatility and low volume are frequently correlated, suggesting that the price may stay in a small range for some time. Furthermore, there isn’t yet substantial confirmation of a positive trend in the Relative Strength Index, which is now heading towards 60.
The latest low at about $0.000021 and the previously stated 50-day EMA at $0.000025 are important support and resistance levels to keep an eye on. In the near future, these levels will probably prepare the way for the asset.
It is premature for SHIB holders to begin rejoicing, even though the company’s recent success in overcoming the 26-day EMA is giving investors new optimism. The future of the asset seems quite bleak given the impending test at the 50-day EMA and the low trading volume.
