Shiba Inu stays above key resistance levels, but for how long?

Shiba Inu (SHIB) Broke out Successfully, But Will It Hold?
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Shiba Inu has been a topic of intense discussion following the sharp recovery of the market. The meme coin’s potential to generate significant returns has caused it to stand out in the crypto spotlight. However, as with all cryptocurrencies, the question remains: What does the future hold for SHIB? Let’s dive into its technical charts for insights.

Technical chart indicators

Moving averages: The SHIB price, for the most part, seems to be dancing around its Exponential Moving Averages (EMAs), specifically the 50-day and 100-day EMAs. Historically, when SHIB’s price has surpassed these EMAs, it has indicated bullish sentiment. At present, we see that the price is slightly below the 100-day EMA, hinting at a consolidation phase or a possible bearish pullback.

https://www.tradingview.com/
Source: TradingView

A spike in volume during late August correlates with a price surge, suggesting strong buying interest. However, recent reduced volumes might indicate diminishing buyer momentum or a period of market indecision.

Transaction metrics

Average transaction size: There has been a considerable drop in the average transaction size since late September. This decline could mean that investors are moving smaller amounts, possibly due to uncertainty or a wait-and-see approach.

The 30-day volatility, currently at around 31.45%, indicates relative calm compared to its high of 36.23% in late September. Lower volatility can mean reduced risk, but it can also signify a lack of strong price movements in either direction.

Given the current technical situation, the consolidation phase visible on the chart increases the probability of a retrace. The key support levels to watch are around the last significant low. If it breaks, it could signal a deeper correction.

If SHIB manages to break above the 100-day EMA with substantial volume, it could trigger an acceleration of the current rally. This move would signify renewed bullish sentiment, potentially pushing the coin to test its previous highs.

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