Next Key Resistance Levels to Watch as Shiba Inu Explores Breakout

Shiba Inu (SHIB) proponents keep a close eye on key resistance levels as the crypto asset attempts to stage a comeback amid the prevalent downtrend that has held it below $0.000008. 

Currently trading below critical price thresholds, the asset is facing a challenging path to recovery. On Sept. 1, Shiba Inu dipped below the psychological threshold of $0.000008 and has struggled to regain its footing for over six weeks. 

However, recent developments in the broader crypto market have brought a glimmer of hope, with Bitcoin (BTC) staging periodic modest rallies. On Oct. 16, SHIB witnessed a surge, touching $0.00000730, but it faced significant resistance, causing its price to retreat to $0.00000705.

It’s crucial to examine vital technical indicators to gauge Shiba Inu’s short-term potential. Notably, SHIB trades beneath the 50-day Exponential Moving Average (EMA) at $0.00000739 and the 200-day EMA at $0.00000846. 

These moving averages are instrumental in tracking an asset’s recent performance, with the 50-day EMA reflecting short-term trends and the 200-day EMA providing insights into longer-term trends.

Adding to the bearish sentiment is Shiba Inu‘s Commodity Channel Index (CCI), which presently stands at -24.72 on the daily timeframe. The CCI is a momentum-based indicator that identifies overbought and oversold conditions. A CCI below zero signifies that SHIB remains in a downtrend.

Shiba Inu Seeks to Break Downtrend

SHIB’s effort to break free from this downtrend is evident in its recent retest of the resistance level at the 21-day EMA, a crucial indicator of market trends. 

The 21-day EMA, currently at $0.00000711, is a significant indicator of signs of a potential trend reversal. A successful break above this EMA could indicate underlying strength, possibly leading to an uptick in SHIB’s price.

However, the path to recovery won’t be easy, as Shiba Inu faces multiple resistance levels on its way up. If SHIB manages to break out, its immediate resistance is slightly above the 21-day EMA at $0.00000715. 

Overcoming this barrier, the next challenge looms at $0.00000725. The third resistance level, $0.00000747, is noteworthy as SHIB has not hit it since Oct. 2. Breaking through these resistance levels is crucial for a potential trend reversal and renewed investor confidence in Shiba Inu. 

It’s essential to keep a close watch on the 21-day EMA as it plays a pivotal role in determining the short-term trajectory of SHIB. SHIB trades for $0.00000705. The bulls should not lose their ground in the attempt to push the price up, as a drop below this level would bring the $0.00000703 support at play.