Amongst the highly unpredictable volatility in the cryptocurrency market, Shiba Inu (SHIB), the meme coin, has crossed a local resistance level and is on the verge of a breakthrough. An in-depth study conducted on the SHIB/USDT chart shows that the meme coin has a high possibility of having a significant surge based on the price it has been having for the past few days.
The battle that Shiba Inu is having with the 21-day Exponential Moving Average (EMA), is a considerable indicator that decides the trends in the momentum of a cryptocurrency. It has been used as the decision indicator that decides whether the cryptocurrency has a bullish momentum (upward trend) or a bearish momentum (downward trend).
Currently, the meme coin is testing one of the crucial resistance levels as it struggles between the attempts by the bears to bring it down by pushing its price and the bulls trying to propel the price much higher. If the coin becomes able to close beyond this level, then there can be a new upward momentum.
If Shiba Inu manages to win the battle with the EMA and closes at a level beyond this, then that can increase the buying interest toward the coin, attracting more buyers to the coin. The meme coin crossing the key resistance levels indicates that it can lead to a longer-term trend reversal.
Does Shiba Inu (SHIB) Have Growing Trading Volumes, As Well?
Some other data that has to be read along with this, at the same time is that, even though a breakthrough is expected to happen, the trading volume is declining. When a cryptocurrency is managing a 21-day EMA, a reassuring indicator can be the hike in the trading volumes as well.
When the trading volumes are also on a hike it shows that the buyer interest in the cryptocurrency is also increasing. It can add more credibility to the price movements in the charts of the cryptocurrency.
However, in the case of Shiba Inu, the decline in the trading volume makes things more uncertain and unpredictable. Currently, expert traders and those who conducted a meticulous study on the price charts of the meme coins suggest that the bullish momentum that the coin is currently having can not be the decisive factor. As a bullish trend without a potential buyer interest hints that the bullish run might not last as long as possible and the long-term sustainability is doubtful.
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Meanwhile, Ethereum Manages To Make A Comeback
The second most popular cryptocurrency Ether has staged a comeback after facing a 2 percent fall in the market recently and a dip in the investments that it receives. A study on the price chart of Ethereum shows that the ETH is making a steady comeback, back to the 1,600 US dollars range. If the coin manages to rise above this range and close above it, that can be a pre-sign of a whole lot of changes in the trend.
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