Shiba has piggybacked on the recent meme coin surge to keep 13% gains last week. The entire meme coin category enjoyed an upswing in the last seven days thanks to Elon Musk’s Twitter takeover.
The main attention was on Dogecoin due to speculations of the billionaire adding it as a payment option on the social media platform. However, the Shiba army saw it as an opportunity to push their token to the green zone.
October 28 saw Shiba Inu break out of its bullish pennant structure, attracting fresh buyers. This bullish volatile break propelled Shiba towards its high liquidity zone at the Point of Control (POC) in the $0.00001204-area. The breakout has also helped the token register substantial gains on the day. At press time, Shiba is trading at $0.00001204.
Shiba’s Relationship With Dogecoin
The value of Shiba Inu has often increased simultaneously with that of Dogecoin. Unless there is a sudden shift in the price of meme coins, this pattern will likely persist, at least temporarily.
On Halloween, Musk posted a photo of a Shiba Inu dog wearing a Twitter outfit and holding a Twitter pumpkin. He then added a wink emoji as a caption. As expected, the value of Musk’s favorite cryptocurrency, Dogecoin, increased, pulling Shiba Inu along.
In the minutes following his post, DOGE decreased by 3.02%. Shiba Inu also saw a significant increase, but not as large as DOGE. It rose by almost 5% to a new local high of $0.0000132. After the initial excitement subsided, the Shiba Inu now held a 5.17%, trading at $0.0000128. But as of writing, Shiba Inu has shed all that gain and now trades at $0.0000120, over 5%% loss.
SHIB’s price is currently trading at $0.000012. | Source: SHIBUSD price chart from TradingView.com
SHIB’s 20 EMA Become Strong Support After Breakthrough.
Shiba Inu concluded a compression period when it surged above the $0.0000101 level. Buyers drove a volatile break above the 20 EMA (cyan), the 50 EMA (blue), and the 200 EMA (green). This latest upswing in SHIB has drawn a bullish pattern on the 4-hour time frame. The pattern broke out after a robust rejection of lower prices at the 20 EMA, accelerating buying pressure.
As the 20/50/200 EMAs all pointed north following the golden cross, buyers could try controlling the short-term trend. A rejection from the $0.000013 area might put an end to the run of positive candlesticks. With that in mind, the price of $0.0000123 may serve as the first significant support level that bears try to break. The token might see short-term gains if it closed above the $0.0133 level immediately or eventually. As a result, SHIB may see a bearish invalidation and try to revisit the $0.0000141 resistance level.
The Relative Strength Index (RSI) also rose over 50, indicating robust purchasing power. The latest string of green candlesticks also had large volumes that indicated an underlying optimistic attitude. Buyers can measure the likelihood of a bullish invalidation by watching for a big reversal on the relative strength index.
Featured image from Pixabay and chart from TradingView.com