Shiba Inu Needs to Breach this Crucial EMA to Secure an Uptrend

Shiba Inu must break above the 50-day exponential moving average (EMA) to flip its momentum from range-bound to bullish.

The crypto market is currently in an indecisive phase, where prices continue to move within a range. At this stage of the market, Bitcoin (BTC) and other notable assets fail to record any significant move up or down, as market forces struggle to find a prevalent trend.

Notably, The Crypto Basic confirmed today that Shiba Inu has a 79% correlation with Bitcoin over the last 30 days. This indicates that SHIB typically follows Bitcoin’s price movements within this period. As a result, the ongoing market consolidation has also impacted Shiba Inu. 

SHIB’s Trend Shifts from Bullish to Bearish

However, SHIB has leaned more into bearish territories, recently recording a price dip. This dip has pushed Shiba Inu below the pivotal 50-day EMA, indicating a shift in mid-term momentum from bullish to bearish. This slump underneath the 50-day EMA occurred yesterday, as SHIB closed the day at $0.00002427, below the $0.000025 support.

This bearish trend began on May 30 after SHIB retested the resistance at the $0.00003 level. At its current price, Shiba Inu has now dropped 12% since May 30. However, optimistic projections have emerged, with market analysts expecting SHIB to flip the bearish trend. Nonetheless, market data suggests that this relies on SHIB’s ability to breach the 50-day EMA.

This pivotal level currently hovers around $0.00002471. Shiba Inu must confidently close above the price territory to successfully end the ongoing bearish trend. Essentially, a break into the $0.000025 psychological threshold might grant enough strength to the bulls to engineer a trend shift.

Shiba Inu Needs to Breach and Maintain the 50-Day EMA

However, a push above $0.000025 is not sufficient to maintain the uptrend, as observed in past movements. This is due to how fickle the support at $0.000025 currently is. SHIB must flip the $0.00003 price territory from resistance to support if it seeks to retain the uptrend. Otherwise, the bears could trigger another slip below the 50-day EMA.

Nonetheless, Shiba Inu would continue to face a fierce battle on the path to recover $0.00003. IntoTheBlock data indicates that the dog-themed token faces a massive sell wall at this level, where 124,220 addresses procured 92.2 trillion SHIB tokens between $0.000025 and $0.00003. 

These addresses rush to offload their holdings at breakeven when SHIB attempts to breach this level, exerting more selling pressure and foiling the breakout attempt. Shiba Inu would need a resurgence of accumulation to counteract the impact of this selling pressure next time it retests $0.00003.

At the current price of $0.00002420, Shiba Inu’s most immediate resistance rests at the 38.2% Fibonacci retracement level ($0.00002509). After conquering this zone, SHIB faces four more resistance points from $0.00002589 to $0.00002926 on the journey to $0.00003.