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Shiba Inu (SHIB) could reverse course in the next 3 days – here’s why
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Shiba Inu is on the verge of reaching a crucial price threshold; The 200 EMA is expected to become the main support level for the asset in bullish mode. However, the break below will definitely cause serious problems, pushing Shiba Inu into the void and potentially triggering the death cross.
Currently trading at around $0.00002169, Shiba Inu has attempted to keep pace, sitting above key support levels. The crucial level to watch is the black line which represents the 200 day exponential moving average. A significant reversal could occur for SHIB if it manages to maintain its position above this level. However, if this support is not held, further declines and a bearish trend could occur occur.
Traders are keeping an eye on indicators such as the 50-day EMA and the 100-day EMA. The 50 day EMA appears to be joining the 200 day EMA. If these lines cross, a death cross could occur, a bearish technical pattern indicating potential future declines. However, there is always a possibility that the SHIB will recover from the 200-day EMA, avoiding this negative situation.
Overall market sentiment and trading volume are additional considerations. The decrease in trading volume suggests the absence of solid buying interest, which is essential in the event of a trend reversal. The RSI at the bottom of the chart proves this SHIB is approaching the oversold domain, which could demonstrate the potential for buying interest.
Some potential causes could push the price of SHIB higher. A price reversal could be caused by positive news or developments in the Shiba Inu ecosystem, as always, market recovery or increased interest from institutional investors.
About the author
Arman Shirinyan
Arman Shirinyan is a trader, cryptocurrency enthusiast and SMM expert with more than four years of experience.
Arman firmly believes that cryptocurrencies and blockchain will be in constant use in the future. Currently he focuses on news, articles with in-depth analysis of crypto projects and technical analysis of cryptocurrency trading pairs.