The EMA ribbons were stretched too far while looking south. Sellers pulled Shiba Inu [SHIB] toward the $0.00738 zone following the bear run. This multi-year support helped the buying efforts to drive a bullish flip on ribbons.
While the buyers raised their pressure gradually, the recovery of the dog-themed coin collided with that at $0.01217.
In the next sessions, the bullish flip of the EMA ribbons could assist the alt to break above $0.012. SHIB traded at $0.01206 as of press time.
Recent growth in altcoin saw a classic back-and-forth between buyers and sellers at the Point of Control (POC red). The high liquidity mark has ensured flatter peaks for more than seven weeks.
SHIB showed an ascending triangle in the daily timeframe, with a steady increase in the troughs over the past 25 days and flatter peak heights. This pattern indicated that there was an underlying increase in buying power. The bullish edge was further supported by the bullish crossover at the 20/50 EMA.
Buyers would like to move beyond the $0.012-zone constraints. SHIB could be entering a phase of high volatility due to the altcoin’s prolonged squeeze over the last month. Altcoin could test the $0.01382-zone by breaking above its immediate ceiling.
However, any reversals will likely see a pullback towards the $0.0104 area before a revival.
The RSI showed a slight bullish edge after several attempts to break the 59-mark. It must find a convincing close above the resistance level to increase the chance of a price breakout.
The CMF lost its support at zero and showed a selling edge. However, the CMF’s recent troughs diverged from the price in a bullish manner.
To underline a bullish edge, the Aroon Up (yellow), maintained its position above that of the Aroon Down (blue). The Aroon up should see a rebound above the 42-50% support area to maintain its bullish edge.
SHIB may be on the verge of a breakout, given the ascending triangle setup and the bullish flip in the EMA ribbons. As previously discussed, the targets will remain the same.
Alt shares have a 90% correlation with Bitcoin over the past 30 days. To make a profit, it is important to keep an eye on Bitcoin’s movements and the overall market sentiment.