- SHIB’s price could surge 10% as technical pressure builds up.
- Break above 50 EMA could trigger momentum-driven price acceleration.
- 100 EMA remains a key resistance for SHIB’s potential rally.
Shiba Inu (SHIB) has recently entered a key phase that traders often associate with a “free move”—a rapid upward surge driven by technical factors, rather than underlying fundamentals. Currently, SHIB is caught in a narrow price range, trapped between an ascending trendline below and the 50-day Exponential Moving Average (EMA) overhead.
This setup, characterized by tightening price action, suggests that a breakout may be imminent, although the direction remains uncertain. While SHIB has faced downward pressure in recent weeks, it has managed to stabilize without experiencing significant sell-offs, indicating that a potential move could be on the horizon.
The cryptocurrency’s price behavior over the last few weeks has been marked by higher lows and attempts to break through the 50 EMA. Although SHIB has been trading below both the 100 and 200 EMAs, signaling an ongoing downtrend, the repeated failure of sellers to push the price lower suggests a shift may be underway. This creates a compression zone, with the price unable to breach lower levels, yet also struggling to break above key resistance levels.
Technical Setup Points to Short-Term Volatility
According to recent market analysis, the compression between the 50 EMA and the ascending trendline is likely to trigger a surge in volatility once SHIB decides on a direction. The 50 EMA stands as the critical resistance point; should SHIB break above it, a potential 8-10% upside could follow. This surge is not due to any fundamental shift in the asset itself but rather the absence of significant resistance immediately above this level.
Also Read: XRP to Break Through the Selling Wall Soon? Here’s What’s Happening
Traders often refer to such a price movement as a “free spike,” driven more by mechanical factors, such as short-term traders unwinding positions. If SHIB breaches the 50 EMA, momentum traders are likely to flood in, pushing the price further, at least until it hits a more substantial resistance point.
Source: Tradingview
However, it’s important to note that the 100 EMA, positioned just above the current price action, poses a formidable resistance barrier. Even if SHIB manages to break above the 50 EMA and experience an initial rally, this 100 EMA will likely cap further price movement. Historically, the 100 EMA has proven to be a significant level, restricting SHIB’s upward momentum multiple times.
Shiba Inu’s current price action is setting the stage for a potentially swift upward movement, driven primarily by technical factors and positioning. While the asset could experience an initial boost once it breaks through the 50 EMA, any sustained rally will likely face significant resistance at the 100 EMA. The market’s reaction will depend heavily on how SHIB interacts with these key levels in the coming days.
Also Read: Analyst: ‘Don’t Be Shocked When XRP Hits $15 This Year’ – Here’s Why
