Over the last 24 hours, Shiba Inu [SHIB] has recorded a 3.5% increase, with a notable 12.2% rise in the past month. Despite this positive performance, it has not been able to keep up with Dogecoin’s [DOGE] recent surge of 24% in a month, the leading meme coin based on market capitalization.
Trading below a resistance zone, Shiba Inu holds optimistic projections for the upcoming weeks and months.
Signs Pointing to a Potential Uptrend with the Shiba Inu Golden Cross
Bullish momentum was evident for Shiba Inu as indicated by the Awesome Oscillator. The current market structure on the daily chart also leans towards a bullish stance, with trading volume surpassing levels seen in September.
Despite approaching the resistance zone at $0.00002, the On-Balance Volume (OBV) remains stagnant near the lows of August and September. In order to heighten the chances of a significant breakout, there must be an increase in buying pressure.
A defining characteristic to watch for is the golden cross, where the 50-day moving average crosses above the 200-day moving average, signaling a bullish trend. Although this configuration has not manifested at present, if it does, it could serve as a strong indication to traders that Shiba Inu is poised for a vigorous rally.
Challenges Ahead for SHIB Bulls
While price action and momentum demonstrate bullish tendencies, the buying volume remains lackluster. This trend is mirrored in the mean coin age, denoting a consistent downtrend since September, suggestive of ongoing distribution throughout the network.
Moreover, recent gains imply that short-term holders are currently in profit territory. This may drive them to sell off their SHIB holdings, potentially impeding the breakout above $0.00002.
Disclaimer: The opinions expressed in this content do not constitute financial, investment, or trading advice, and solely represent the viewpoint of the author.