Shiba Inu ended a two-week-long consolidation phase on Friday as an altcoin rally gripped the market. The world’s second-largest meme coin announced its presence via a 41% hike over the last three days. However, the daily 50-SMA (yellow) could stall SHIB’s advance to targets set for this week.
Shiba Inu 4-hour Time Frame
Shiba Inu bulls responded to an earlier consolidation phase with conviction. A large green candle on Sunday accounted for a 26% hike- Shiba Inu’s highest daily gain since October 2021. The resulting breakout saw SHIB climb past several important barriers on its daily chart – The 20 SMA (red), 200 (green) SMA, $0.00002528-resistance, and a 4-month active bearish trendline. Going forward, a successful close above $0.00003250 would create a higher high and confirm an uptrend.
However, overcoming the 50-SMA (yellow) was not that straightforward. The MA clashed with a daily resistance zone between $0.00003300 – $0.0000280. A rejection within this area would shift the spotlight to $0.00002638 and $0.00002528 near-term supports.
Once new longs are introduced close to the 200-SMA (green), bulls would carry a greater force for a breakout. This week’s targets lay at $0.00003520 and at $0.00004005 if SHIB’s rally were to extend beyond the 50-SMA.
Meanwhile, a majority of SHIB holders would not be incentivized to sell until the price makes further progress. Data from IntoTheBlock showed that 50% of holders were still at a loss based on SHIB’s current price. The finding could cushion SHIB from an extended correction.
Indicators
The daily RSI finally poked above 55 after three months of weak movement. With no immediate hurdles insight, the RSI was expected to make way towards 75 this week. Secondly, a bullish crossover on the Directional Movement Index would continue to generate more buying pressure before the majority of holders shift to profits on their SHIB holdings.
Conclusion
Shiba Inu was within a long-term bullish narrative after making key developments during the weekend. Once a near-term pullback is crunched between $0.00002638 and $0.00002528, expect SHIB to make headway to the abovementioned targets.