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Recently Shiba Inu has experienced a significant preemptive signal for the market, as it surged above the 50-day exponential moving average. Investors who have been waiting for a market recovery have hope as SHIB breaks above this technical level.Â
As an early predictor of a possible trend reversal, the current move above the 50 EMA indicates growing bullish sentiment. SHIB is now getting close to a significant resistance level at the 100 EMA, even though this breakout may thrill some traders.Â
This has historically been a difficult time for assets, and if SHIB finds it difficult to break through, it might mean the end of the current rally. The chart shows that SHIB has been in a longer-term bearish trend since its last peak, with a string of lower highs and lower lows. For SHIB, the 200 and 100 EMAs continue to be major obstacles. If they fall below these marks, the asset may resume its retracement.Â
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If SHIB can break through the 100 EMA, there is still a chance for additional growth, even though this rally may end sooner than expected. If it is successful, the 200 EMA would be the next level of resistance, which might indicate a more persistent upward trend.
The recent spike above the 50 EMA for Shiba Inu is a good sign, but the asset’s next move will be heavily influenced by the resistance level at 100 EMA. One way or another, Shiba Inu is one of the most risky assets on the market, and relying on signals like a 50 EMA breakthrough when making decisions is short-sighted, which is why waiting for more substantial indications of a trend reversal may be suitable.
