Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
(For brevity, SHIB prices are multiplied by 1,000 from now on).
As the EMA ribbons overloaded as they looked south, sellers pulled Shiba Inu [SHIB] towards the $0.00738 zone after the previous bear run. This multi-year support helped the buying efforts to get a much-needed bullish flip on the ribbons.
The dog-themed coin’s recovery collided with the $0.01217 ceiling as buyers gradually ramped up their pressure.
The bullish flip on the EMA ribbons could help the alt find a break above the $0.012 level in the coming sessions. As of going to press, SHIB was trading at $0.01206.
SHIB Daily Chart
The altcoin’s recent growth has witnessed a classic back and forth between buyers and sellers in the Point of Control (POC, red) region. This high liquidity mark has led to flatter peaks for more than seven weeks.
With consistent growth on the lows over the last 25 days and flatter highs, SHIB revealed a bullish triangle on the daily time frame. This pattern showed the existence of an underlying increase in purchasing power. To top it off, the bullish crossover on the 20/50 EMA further confirmed the bullish edge.
The buyers would like to break above the restrictions of the $0.012 zone. Looking at the overloaded altcoin pressure over the past month, SHIB could enter a phase of high volatility in the coming days. A breach above the immediate ceiling level could help the alt test the $0.01382 zone.
Rather, any reversal would likely see a pullback toward the $0.0104 region before a rebound.
After struggling several times to hit the 59 mark, the RSI flashed a slight bullish edge. To increase the likelihood of a possible price breakout, it must find a convincing close beyond the resistance level.
However, the CMF lost its zero-mark support and revealed a selling advantage. Still, recent declines have diverged bullishly with price.
In addition, the Aroon up (yellow) maintained its position above the Aroon down (blue) to underline a slight bullish edge. To maintain the bullish edge, the Aroon up should ideally see a rebound from the support range of 42-50%.
Given the arrangement of the ascending triangle next to the bullish flip on the EMA ribbons, SHIB could be on the better side of a possible breakout. The goals remain the same as discussed.
However, the alt shares a 90% 30-day correlation with Bitcoin. Therefore, it would be essential to keep an eye on Bitcoin’s movement with general market sentiment in order to make a profitable move.