Shiba Inu’s [SHIB] traders should be aware of these important breakout possibilities
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.
After plunging below the $0.020mark, Shiba Inu [SHIB] expedited its bearish break into a high volatility phase. The multi-monthly baseline around the $0.00738 region aided the buyers in recouping their forces.
The dog-themed coin’s recovery from this support zone has slammed into the 38.2% Fibonacci resistance multiple times over the past month.
Nonetheless, the current setup hinted at a gradual increase in buying vigor. Any bullish crossovers on the EMAs could help the alt find a break above the $0.012-level. (For brevity, SHIB prices are multiplied by 1,000 from here on).
At press time, SHIB was trading at $0.01207, down by 2.63% in the last 24 hours.
Source: TradingView, SHIB/USD
SHIB’s drop below the $0.02-level saw an over 65% decline toward its eight-month low on 18 June. The symmetrical triangle setup alongside its previous downtrend fueled the alt’s patterned breakdown.
Nevertheless, the altcoin’s recent growth witnessed a fierce tussle between the buyers and sellers near the Point of Control (POC, red). This liquidity region, in conjunction with the 38.2% Fibonacci level, has created a stiff resistance.
Now, as the gap between the 20/50 EMA has significantly decreased, the buyers would be keen to break above the constraints of the $0.012-zone.
Looking at the altcoin’s extended compression phase over the past month, SHIB could enter a high volatility phase in the coming days. Should the buyers continue to ramp up their gradual edge, the crypto could see a further progression. A breach above the 38.2% level can help the alt test the $0.01382-zone.
On the flip side, any reversals would
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