Shiba Inu could finally break the stubborn resistance at the 200-day exponential moving average, setting it up for a rally to higher prices.
Analyst SwallowAcademy shared this view in a recent TradingView analysis, banking on Shiba Inu to continue its recent price resurgence. The prominent meme coin has closed positively for five consecutive days, during which it grew by 7.76%, sparking speculations of further upside.
Shiba Inu and the 200 EMA
Meanwhile, SwallowAcademy identified a pattern of price rejection whenever Shiba Inu reaches the 200-day exponential moving average (200EMA). For context, it turned the 200-day EMA into a resistance level with a sharp fall below on January 19 and has since struggled to trade above the indicator sustainably.
SHIB rallied past the resistance trendline to a high of $0.00001765 in May but couldn’t hold above it for long, falling back below to June’s low of $0.00001004. It tried again on July 21 with its rally to $0.00001597 but faced a similar outcome.
Shiba Inu’s last attempt to break the 200-day EMA resistance occurred on August 14, when it rallied to $0.00001419 but faced rejection again. However, amid the latest recovery, it is now eyeing another retest. The Wednesday analysis highlighted that this time looks different for Shiba Inu.
The market commentator predicted further upside, with the current bullish momentum ensuring that SHIB finally breaks above the 200-day EMA to reach higher prices. At the time of writing, the indicator lies at $0.00001384, just 3% away from the current market price.
Breaking the 200 EMA Not the End for SHIB
However, SwallowAcademy noted that breaking above the EMA is not all there is for Shiba Inu. According to him, the event would only pave the way for higher targets for the meme coin.
He specifically stated that if buyers manage to push Shiba Inu past the exponential moving average, its following targets are a breakout to $0.000020 and $0.000024. Notably, these areas are crucial resistance points for Shiba Inu and reclaiming them sets the premise for even higher prices.
From the current market price of $0.00001342, the rally to $0.000020 and $0.000024 represents a 49% and 78.8% increase, respectively. It would also see Shiba Inu reclaim price levels last seen in January.
Meanwhile, other analysts have also predicted Shiba Inu’s return to levels above $0.000020. Analyst Ali Martinez is one of them, predicting that SHIB would target the price mark when momentum peaks. Another analysis also has this outlook, mentioning $0.000021 as one of the Fibonacci targets in an expected price recovery.
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