Shiba Inu (SHIB) has recently fallen below the important 50-day exponential moving average (EMA).
In order to end the ongoing bearish trend, SHIB must confidently close above the 50-day EMA.
Shiba Inu is facing a significant sell wall at the $0.00003 level, where 124,220 addresses hold 92.2 trillion SHIB tokens.
Currently, the cryptocurrency market is experiencing a period of indecision, with prices moving within a narrow range. During this phase, major assets like Bitcoin (BTC) are struggling to show any significant upward or downward movements, as market forces try to establish a dominant trend.
Contrary to the broader market, SHIB has recently shown a stronger inclination towards bearish territories, as seen in its recent price decline. This drop has caused Shiba Inu to fall below the critical 50-day exponential moving average (EMA), indicating a shift in mid-term momentum from bullish to bearish.
The fall below the 50-day EMA occurred yesterday, with SHIB closing the day at $0.00002427, below the support level of $0.000025.
The start 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’s price has dropped by 12% from its May 30 level.
Despite the current bearish sentiment, market analysts remain optimistic, expecting SHIB to potentially reverse the trend. However, market data suggests that this reversal depends on Shiba Inu’s ability to surpass the 50-day EMA.
SHIB needs to breach and sustain above the 50-day EMA, which is currently around $0.00002471, in order to effectively end the prevailing bearish trend. Breaking the psychological threshold of $0.000025 could potentially give the bulls enough strength to initiate a trend reversal.
However, historical price movements indicate that simply pushing above $0.000025 may not be enough 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 level from resistance to support. Failing to do so could expose Shiba Inu to the risk of another bearish drop below the 50-day EMA.
