- SHIB struggles at 100-day EMA, testing bullish strength and volume.
- Price spikes driven by short-covering, lacking sustained demand and momentum.
- Investor caution grows as SHIB faces critical resistance at 100 EMA.
Shiba Inu (SHIB) has encountered a significant hurdle in its recent price movement, as it continues to face strong resistance at the 100-day exponential moving average (EMA). Despite a brief attempt to recover from a local support zone, SHIB’s upward momentum has been repeatedly halted by this key level, which has acted as a price ceiling. The 100-day EMA has been a consistent barrier this year, preventing any sustained upward movement.
Trapped in a Downtrend, SHIB Shows Signs of Short-Term Recovery
Shiba Inu (SHIB) is currently navigating a broader downtrend but is trading within a short-term recovery structure. Recent price spikes have been largely driven by short-covering and reactive buying, rather than sustained demand.
This indicates that the rally may lack the necessary strength to break through the 100-day EMA, which has acted as a significant resistance level. Moreover, a closer inspection of SHIB’s price action reveals that volume levels are insufficient to support a sustained move above this critical resistance, suggesting that the bulls are struggling to take control.
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Source: Tradingview
The hesitation in the market is also reflected in volume dynamics, as there has been little follow-through on upward movements. While there was a brief spike during the bounce, buying interest began to decline as SHIB approached the 100-day EMA.
This lack of conviction from buyers points to the strength of the resistance and highlights investor caution. Additionally, the relative strength index (RSI) remains in a neutral zone, reinforcing the lack of clear dominance from either the bulls or bears in the current market.
The Critical Importance of the 100-Day EMA
At this stage, SHIB’s next move is crucial, where a clean breakout above the 100-day EMA, accompanied by strong follow-through volume, could significantly alter the current market dynamics. Such a breakout would likely shift sentiment and pave the way for a more substantial rally.
However, failure to break through this level may result in another rejection, pushing SHIB back to lower support zones. Investors are now caught in a waiting game, weighing the potential for a breakout against the risks of further downside.
The outcome of this price action will largely depend on SHIB’s ability to close firmly above the 100-day EMA and hold that level as support. Until then, the cryptocurrency remains technically capped by this resistance, and market participants are closely watching for any signs of a decisive move in either direction.
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