Shiba Inu [SHIB] has displayed notable bullish signals, recently breaking out of a descending wedge pattern on its daily price chart. This breakout implies a potential change in momentum for SHIB as it aims for higher price levels.
Currently, SHIB is trading around $0.00001735, marking a 3.21% increase in the past 24 hours.
The token is now encountering initial resistance at $0.00001911, followed by a more significant barrier at $0.00002869. Thus, a successful breach of these levels could validate a sustained bullish trend.
Will Shiba Inu surpass these critical resistances and reignite broader market attention?
Is the breakout from the descending wedge pattern indicative of a new uptrend?
The recent breakout of SHIB from a descending wedge pattern, a classic bullish signal, suggests revived strength. The price chart depicts SHIB nearing its first resistance at $0.00001911, with momentum indicators seemingly supporting this upward movement. If Shiba Inu surpasses this level, it will then face a stronger barrier at $0.00002869.
Therefore, a breakthrough above both levels could signal a more prolonged bullish trajectory, potentially attracting more market interest. However, sustained momentum is essential—can SHIB capitalize on this breakout effectively?
Momentum Shift on Stochastic RSI and MACD
Assessing SHIB’s Stochastic RSI reveals an encouraging outlook. The Stochastic RSI stands at 17.07 (blue line) and 18.06 (orange line), signaling an oversold condition that often precedes a price recovery.
An upward movement in this indicator could indicate a stronger uptrend if it crosses above 20.
Furthermore, the MACD confirms this momentum shift. As the MACD line approaches zero, it shows early signs of a bullish crossover. Hence, the combination of Stochastic RSI and MACD signals suggests potential buying pressure.
Reduced Exchange Reserves Alleviate Selling Pressure
The exchange reserves currently total 137.4918 trillion tokens, reflecting a 0.21% decline in the last 24 hours. A decrease in exchange reserves implies a decrease in tokens available for sale, thereby lessening selling pressure.
This trend aligns with SHIB’s bullish outlook, indicating that holders are transferring tokens off exchanges in anticipation of price gains.
Bullish Sentiment in Long/Short Ratio Backs Rally
SHIB’s long/short ratio is at 1.1013, with 52.41% of positions being long and 47.59% short. This bullish stance suggests a market preference for upward movement, with more long positions than short.
Hence, a persistent increase in this ratio could strengthen SHIB’s momentum, supporting its potential to challenge immediate resistance levels.
Can SHIB Sustain its Current Momentum?
Boosted by robust technical support from indicators such as the Stochastic RSI, MACD, and a bullish long/short ratio, SHIB seems well-positioned to continue its uptrend.
If SHIB successfully breaches the critical resistance levels at $0.00001911 and $0.00002869, it is likely to maintain its rally and possibly attract heightened market attention. Presently, SHIB seems primed for further upside potential, solidifying its bullish momentum in the short term.