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Denial of responsibility: The findings of the following analysis are the sole views of the author and should not be considered investment advice
(For brevity, SHIB values are multiplied by 1,000 from here on).
As EMA ribbons overstretched looking south, sellers pulled Shiba Inu [SHIB] towards the $0.00738 zone after the previous bear run. This multi-year support has aided buying efforts to promote a much-needed upside to ribbons.
The dog-themed coin’s rally collided with the $0.01217 high as buyers gradually increased their pressure.
The bullish reversal in the EMA ribbons could help the alt find a break above the $0.012 level in the coming sessions. At press time, SHIB was trading at $0.01206.
Daily SHIB chart
Source: TradingView, SHIB/USD
The recent altcoin development witnessed a classic rally between buyers and sellers in the Point of Control (POC, red) area. This high level of liquidity has ensured flatter tops for more than seven weeks now.
With steady growth on thresholds over the past 25 days and flatter tops, SHIB has revealed an ascending triangle on the daily chart. This pattern indicated the existence of an underlying boost in purchasing power. Additionally, the bullish crossover at the 20/50 EMA further confirmed the bullish advantage.
Buyers would like to break the restrictions of the $0.012 zone. Looking at the altcoin’s extreme squeeze over the past month, SHIB could enter a high volatility phase in the coming days. A breach above the immediate ceiling level may help the alt test the $0.01382 zone.
Instead, any reversals would likely see a pullback towards the $0.0104 area before a revival.
Logic
Source: TradingView, SHIB/USD
After struggling to reach the 59 mark several times, the RSI showed a slight uptrend. To increase the chances of a possible price breakout, it needs to find a compelling close beyond the resistance level.
However, CMF missed its zero support and revealed a selling edge. Even so, its recent thresholds have varied upward with price.
Additionally, the Aroon up (yellow) held its position above the Aroon down (blue) to highlight a slight bullish edge. To maintain the upside, Aroon up should ideally see a rebound from the 42-50% support range.
conclusion
Given the ascending triangle setup alongside the bullish reversal in the EMA bands, SHIB could be on the brighter side of a potential breakout. The objectives will remain the same as discussed.
However, the alt shares a 90% 30-day correlation with Bitcoin. Hence, tracking the movement of Bitcoin with the overall market sentiment would be necessary to make a profitable move.
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