The Shiba Inu meme token (SHIB) is struggling to maintain its bullish momentum. After failing to break through a major resistance zone, SHIB appears to be entering a correction phase, raising concerns among holders.
Correction in sight for Shiba Inu after a scathing rejection at the 50 EMA!
According to technical analysis from U.Today, Shiba Inu is at a critical inflection point. The cryptocurrency had recently climbed towards its 50-day exponential moving average (EMA), a key resistance level. However, SHIB suffered a scathing rejection at this level, triggering a marked reversal of the trend.
This bearish pivot at the 50 EMA signals a running out of steam bullish momentum of SHIB, in a context of widespread loss of momentum in the crypto market.
The sluggish trading volume that accompanies this reversal reflects the lack of commitment of operators, hesitating to take a position in one direction or the other.
This market indecision is also evident in the Relative Strength Index (RSI), which hovers around 50, a neutral value signaling neither overbought nor oversold. The RSI thus confirms the lack of clear direction for SHIB in the short term.
Support and Resistance Levels to Watch
SHIB's failure at the 50 EMA highlights the lack of buying pressure in the crypto market as a whole. The meme token will now need to rely on immediate support at $0.000021 to avoid a deeper slide.
A breakout of this bottom would open the way for a deeper correction, with potential support towards $0.000012 at the lower boundary of the channel.
Conversely, to return to a bullish bias, SHIB will need to reclaim the 50 EMA and overcome the resistance zone around $0.00003, its recent high. However, such a rebound would require a significant increase in participation and a change in market sentiment, both of which are still uncertain at this stage.
The next sessions will be decisive in gauging SHIB's resilience capacity. A clear bounce off the support at $0.000021 is crucial to avoid the risk of a more severe correction.
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
