Shiba Inu Faces Crucial Support Test: Potential 12% Rally on the Horizon?


Recent technical analyses suggest that the cryptocurrency Shiba Inu (SHIB) is at a pivotal juncture in its price trajectory. Following a strong rally, SHIB is now undergoing a critical retest of key support levels that could shape its short-term outlook. The daily chart for SHIB/USDT reveals consolidation above the 200-day Exponential Moving Average (EMA), a historically significant support level that has often propelled prices higher after a successful retest.

The consolidation phase around the crucial support level at approximately $0.0000084 is being viewed by some as a potential launching pad for future gains. Predictions of a bullish continuation hint at a possible 12% surge in the coming weeks. This optimistic outlook is reinforced by SHIB trading above both the 50-day and 100-day moving averages, signaling a robust uptrend with the potential for further growth.

The sustained position above these moving averages and the potential formation of a “golden cross” — a bullish signal where the 50-day moving average crosses above the 200-day moving average — adds weight to the expectation of an impending price rally. While the golden cross is typically a lagging indicator, investors often interpret it as confirmation of a strong bull market on the horizon.

Bolstering the bullish sentiment, the stable Relative Strength (RS) and increased trading activity are considered favorable conditions for SHIB’s potential rally. These indicators suggest that the coin is displaying compelling signs of a bullish breakout that could trigger a substantial surge, estimated at around 12%.

Technical patterns and support levels indicate that SHIB may be gearing up for a significant upward movement. Despite the notorious volatility of meme coin markets, current indicators offer a cautiously optimistic outlook for SHIB. Investors and traders are closely monitoring for a confirmed breakout above the 200-day SMA, which could signal the beginning of the anticipated climb.

In a separate development, Ethereum’s (ETH) recent price surge has temporarily paused after surpassing the $2,000 mark. The ETH/USD chart on Kraken shows a stabilization of the price around $1,994.50. This stabilization coincides with Ethereum encountering resistance at $2,136, a critical level where profit-taking by Ethereum whales has been observed. Despite this potential for correction, positive market developments, such as BlackRock’s filing of a spot Ether ETF, could strengthen Ethereum’s market position.

While Ethereum’s rally momentarily hesitates, its fundamental outlook remains robust. Analysts suggest that the bulls are gathering strength for a second rally, with a potential climb to $3,000.27 if the resistance at $2,195.87 is overcome. The recent involvement of investment giants like BlackRock has contributed to Ethereum’s year-to-date high of $2,139, signaling bullish sentiment that could drive the price to $3,100. Technical analysis indicates that Ethereum is trading between immediate support and resistance levels at $2,014 and $2,112, respectively, suggesting a potential resumption of the rally if these levels are breached to the upside.

In summary, both Shiba Inu and Ethereum are navigating crucial phases, with Shiba Inu poised for a potential rally and Ethereum consolidating for its next move. While caution is warranted, optimism prevails in the market, fueled by various factors that could act as catalysts for Ethereum’s growth.

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