- Shiba Inu (SHIB) has recently dipped below the crucial 50-day exponential moving average (EMA).
- To end the ongoing bearish trend, SHIB must confidently close above the 50-day EMA.
- Shiba Inu faces a significant sell wall at the $0.00003 level, where 124,220 addresses hold 92.2 trillion SHIB tokens.
The cryptocurrency market is presently experiencing an indecisive phase, characterized by prices moving within a confined range. During this stage, prominent assets such as Bitcoin (BTC) struggle to record any notable upward or downward movements, as market forces grapple to establish a dominant trend.
Shiba Inu’s Trend Shifts from Bullish to Bearish
In contrast to the broader market, SHIB has recently exhibited a stronger inclination towards bearish territories, as evidenced by its recent price dip. This decline has pushed Shiba Inu below the critical 50-day exponential moving average (EMA), signifying a shift in mid-term momentum from bullish to bearish.
The slump beneath the 50-day EMA occurred yesterday, with SHIB closing the day at $0.00002427, below the $0.000025 support level.
The onset of this bearish trend can be traced back to May 30, when SHIB retested the resistance at the $0.00003 level. Since then, Shiba Inu has experienced a 12% drop from its price on May 30.
Despite the current bearish sentiment, market analysts have expressed optimistic projections, anticipating SHIB’s potential to reverse the trend. However, market data suggests that this reversal hinges on Shiba Inu’s capacity to surpass the 50-day EMA.
SHIB Needs to Breach and Sustain Above the 50-Day EMA
The pivotal 50-day EMA currently hovers around $0.00002471, and Shiba Inu must decisively close above this price territory to effectively terminate the prevailing bearish trend. A breakthrough into the $0.000025 psychological threshold could potentially provide the bulls with sufficient strength to orchestrate a trend reversal.
However, historical price movements indicate that a mere push above $0.000025 may not be adequate to sustain the uptrend, given the current fragility of the support at this level.
To ensure the continuation of the uptrend, SHIB must transform the $0.00003 price territory from resistance to support. Failing to do so could expose Shiba Inu to the risk of another bearish slip below the 50-day EMA.
