Shiba took advantage of the meme coin surge last week to maintain 13% gains. The entire meme coin category enjoyed an upswing in the last seven days thanks to Elon Musk’s Twitter takeover. Dogecoin received the most attention, due to speculations about the billionaire making it a payment option through the social media site. The Shiba Army saw this as an opportunity for them to take their token into the green zone.
Shiba Inu, which was able to break free from its bullish pennant structures on October 28, attracted new buyers. Shiba was able to break out of its bullish volatile structure, allowing it to reach the Point of Control (POC), which is in the $0.00001204 area. This breakout also saw the token post significant gains for the day. As of press time Shiba trades at $0.00001204.
Shiba’s Relationship With Dogecoin
Dogecoin has seen its value increase simultaneously with Shiba Inu. This pattern is likely to continue, at most temporarily, unless there’s a drastic shift in price for meme coins.
On Halloween, Musk postedA photo showing a Shiba-Inu holding a Twitter pumpkin and wearing a Twitter costume. The caption was then completed with a wink Emoji. As expected, the value of Musk’s favorite cryptocurrency, Dogecoin, increased, pulling Shiba Inu along.
DOGE emerged in minutes after his post. ReducedBy 3.02% Shiba Inu saw significant growth as well. IncreaseHowever, it is smaller than DOGE. The local peak of $0.0000132 was reached, which saw a nearly 5% increase. Shiba Inu traded at $0.0000128 after the excitement subsided. However, Shiba Inu lost all of its gains and trades now at $0.0000120. This is a loss of over 5%.TradingView.com has the price chart for SHIBUSD
SHIB’s 20 EMA Become Strong Support After Breakthrough.
Shiba Inu ended a period of compression when it surged to $0.0000101. The volatile move above the 20 EMA(cyan), 50 EMA [blue], and the 200 EMA (“green”) was driven by the buyers. On the 4 hour timeframe, this latest surge in SHIB has produced a bullish trend. Following a solid rejection of lower prices at The 20 EMA and accelerating buying pressure, this pattern was formed.
The buyers might try to manage the short-term trend, as the 20/50/200 EMAs were all pointed towards the north in the wake of the golden cross. The positive trend of candlesticks could be ended if the $0.000013 level is rejected. The $0.0000123 level may prove to be bears’ first support level. If the token closes above $0.0133 immediately, or later on, it could see some short-term gains. SHIB might see a bearish invalidation and attempt to retrace the resistance at $0.0000141.
Also available: The Relative Strength Index, (RSI). RoseOver 50 indicates strong purchasing power. Also, the latest green candlesticks had high volumes which indicated an optimistic outlook. The relative strength index will show buyers if there is a significant reversal. This can help them gauge the possibility of a bullish nullification.
Featured image taken from Pixabay. Chart from TradingView.com