- Shiba Inu breaks resistance, signals potential short-term market cooldown.
- RSI enters overbought zone as traders eye profit-taking levels.
- Key moving average crossover supports possible continuation of bullish trend.
Shiba Inu has delivered an impressive price rally, breaching key resistance levels and closing at $0.00001548 in its latest daily performance. This breakout comes after the token surged above the 200-day exponential moving average, signaling a significant shift in market sentiment.
According to TradingView data, SHIB has also cleared the $0.0000145 level, which had previously capped price movement for several weeks. The strong move negates the long-term downtrend that restrained prices earlier this year, proving the bullish structure.
Even as the price action is strong, there has been a sign of a possible cooldown since these technical indicators are now pointing in the same direction. At the moment, the Relative Strength Index is almost at 78 levels, which makes SHIB firmly overbought. Traditionally, those figures have been followed by either a retracement or a period of consolidation.
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Also, SHIB is close to a huge resistance area in the range of $0.000016 to $0.000017. This expanse served as assistance before the March failure and can currently initiate a profit-taking run among traders.
The fact that the market is in an overbought condition and the resistance level prevailed in the past indicates that the present rally might be wearing out.
Resistance Approaches as Market Eyes Possible Pullback
A key development supporting the medium-term outlook is the golden crossover between the 50-day and 100-day moving averages. This technical indicator tends to favor continued upward movement, at least if SHIB holds over the $0.000014 support in any retest.
Volume has been maintained, although analysts warn that any loss in momentum may result in price retesting the $0.000014 or lower, down at $0.000013. This would force technical indicators to reload, a condition that sets up a more sustainable rally.
The breakout has stirred up SHIB advocates, yet the focus is moving to whether the token will maintain above the current levels. Failure to do so may confirm short-term exhaustion, especially as key indicators begin to flash warning signals.
SHIB’s movement remains bullish overall, but the coming days will be crucial. A clear break above $0.000017 could open the door to $0.0000185, while a dip below $0.000014 could shift sentiment toward caution.
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