The price of Shiba Inu (SHIB) is beginning to show bullish signals in the technical indicators after weeks of sideways movement. Amid the overall calmness of the cryptocurrency market, SHIB is making minor upward movements. However, the most notable development is the formation of a significant “golden cross” pattern on the hourly chart. This pattern occurs when the 50-day moving average surpasses the 200-day moving average, often seen by experts as a precursor to a potential rally. Moreover, the recent increase in trading volume suggests heightened investor interest and activity.
Signs of Improvement in Shiba Inu’s Technical Indicators
In the past few days, SHIB’s trading volume has visibly increased. This growth is interpreted as a sign that more investors are taking an interest in SHIB and are positioning themselves based on its anticipated price direction. Altcoins like Shiba Inu, known as memecoins, typically thrive on market excitement and increased interest. Therefore, this rise in volume could ignite the beginning of a larger-scale price movement.
Web3 researcher bigRado has stated that Shiba Inu is starting to show signs of recovery. Supporting this view, “whales,” known as major investors, have recently purchased approximately 10.4 trillion SHIB coins, valued at around 110 million USD. These significant acquisitions by whales occurred immediately after SHIB hit its lowest level in the past 16 months.
SHIB Coin Tests Critical Resistance Level
The price of SHIB coin recovered by 11% last week. Upon examining the current price action, a technical formation indicates potential for further gains. Accompanied by strong trading volume growth, SHIB has managed to rise to 0.00001198 USD but subsequently fell about 1%, dropping below this level. Currently, it is testing an important resistance zone between 0.00001180 and 0.00001185 USD.
If the price can stay above 0.00001190 USD permanently, a rapid rise towards the 0.00001220 USD target may commence. On the other hand, downward risks should not be ignored. SHIB has already reverted to a support zone around 0.00001145 USD. Sellers might aim for the next target at 0.00001140 USD, which lies below this support.
