Shiba Inu (SHIB) has recently experienced a strong breakout, pushing its price to a five-month high. This 36% rally has invigorated bullish momentum for the popular meme coin, though the possibility of a correction from profit-taking investors remains a potential risk.
The rally has brought renewed optimism to SHIB’s community, but sustainability is key to determining its next moves.
Shiba Inu Sees Bullishness
Shiba Inu price’s 36% rise over the last 24 hours has led to a bullish “Golden Cross” pattern. The 50-day EMA (Exponential Moving Average) crossed above the 200-day EMA, reversing the effects of the “Death Cross” seen three months ago. This pattern has historically marked a turnaround, ending SHIB’s recent struggles and hinting at further growth potential for the meme coin.
The Golden Cross is a critical technical signal, as it often attracts new investor interest and reinforces existing bullish sentiment. If this momentum holds, Shiba Inu could sustain its uptrend. However, the meme coin will need strong support from market participants to navigate potential profit-taking pressures, as well as resistance at key price levels.
Shiba Inu Golden Cross. Source: TradingView
On a broader scale, Shiba Inu’s macro momentum reflects some caution. The current distribution of active addresses reveals that approximately 30% of SHIB holders are in profit.
These investors are often more inclined to sell, which could impact the coin’s price if significant selling pressure emerges. This profit-taking tendency may pose a challenge to SHIB’s recent bullish trend and limit its ability to maintain its rally.
While a bullish trend has been established, sustained growth for Shiba Inu depends on broader investor confidence and the ability of long-term holders to hold their positions. If selling begins to outweigh buying pressure, the meme coin could face a setback, especially as it approaches resistance levels.
Shiba Inu Active Addresses by Profitability. Source: IntoTheBlock
SHIB Price Prediction: Struggle Ahead
Currently trading at $0.00002583, Shiba Inu’s recent price action reflects broader market optimism. The meme coin is now eyeing a move toward $0.00002976, a critical resistance level. Should SHIB manage to flip this resistance, it could reach $0.00003000, a psychologically significant price target that would further bolster its position.
However, the $0.00002976 level has historically been a challenging barrier, tested multiple times in the past without a successful breakthrough. If SHIB encounters resistance at this point again, it may retrace to $0.00002267, erasing some of the recent gains. This pullback would serve as a test of the coin’s resilience and investor sentiment.
Shiba Inu Price Analysis. Source: TradingView
A further decline beyond $0.00002267 could invalidate the current bullish outlook, leading to additional losses. Such a shift would mark a potential end to the rally, prompting caution among investors and possibly resulting in a return to lower trading levels for Shiba Inu.
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
