Shiba Inu (SHIB) has made a notable return to the market, rebounding from the 50-day Exponential Moving Average (EMA), which serves as a strong support level for the asset. Fortunately, SHIB did not disappoint and achieved the expected rebound. However, numerous resistances lie ahead, so relying on a rapid upward move may not be the wisest decision.
The 50-day EMA has acted as a reliable support level, providing SHIB with the necessary foundation to attempt a comeback. This recovery brings hope for a reversal and the confidence needed to halt the larger decline that began over a week ago.
Another encouraging result from the moving averages is that SHIB is currently trading above the 100-day moving average. Being above the 100-day EMA, which often serves as an indicator of the medium-term trend, may suggest that the overall trend is shifting towards a more bullish direction. However, the 50-day moving average, now higher than the current price, could act as a resistance level in the near future.
There has been an increase in trading activity during recent price movements, as indicated by the trading volume bars. Intense trading volume often follows significant price changes. To overcome current obstacles and experience a long-term upward trend, SHIB requires high and consistent trading volume.
Read more Whale Activity and Market Performance of Shiba Inu in the Past 24 Hours
Additionally, the Relative Strength Index (RSI) is showing a value of 50. This indicates the potential for movement in either direction, as SHIB appears to be in a neutral zone, neither overbought nor oversold. A rise towards 70 on the RSI could indicate overbought conditions. Currently, SHIB sits in the middle, unlikely to provide clear hints about the next move.
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