The entire cryptocurrency market rebounded and recovered following Trump's election victory. SHIB also closely followed BTC and experienced a strong breakout, pushing its price to the highest level in five months. It has achieved an increase of about 50% in the past week, which has fueled the bullish momentum of this popular MEME token, although the possibility of profit-taking by investors is still a potential risk. More information Crypto Dumplings
This gathering has also brought new optimism to the Shiba Inu community, but sustainability is the key to determining its next move.
Bullish Shiba Inu
In the past 24 hours, the price of Shiba Inu has risen by more than 11%, forming a bullish "golden cross" pattern. The 50-day EMA (Exponential Moving Average) has broken through the 200-day EMA, reversing the impact of the "death cross" that occurred three months ago. Historically, this pattern signals a turning point, ending SHIB's recent struggles and hinting at further growth potential for the MEME token.
The golden cross is a key technical signal because it typically attracts new investor interest and reinforces existing bullish sentiment. If this momentum continues, Shiba Inu may maintain its upward trend. However, this MEME token needs strong market participation to withstand potential profit-taking pressure and resistance at key price levels.
From a broader perspective, Shiba Inu's macroeconomic momentum shows a certain degree of caution, as about 30% of SHIB holders are currently in a profitable position based on the distribution of active addresses. This may make profit-taking a tendency, which could challenge SHIB's recent bullish trend and limit its ability to maintain the upward momentum.
Although a bullish trend has been established, Shiba Inu's continued growth depends on broader investor confidence and the ability of long-term holders to maintain their positions. If selling pressure exceeds buying pressure, the MEME token may face setbacks, especially when approaching resistance levels.
Surge in Shiba Inu Whale Transactions
Meanwhile, large Shiba Inu transactions have surged since late September. This phenomenon has continued through November, with some notable peaks in early October and early November.
Around early November, trading volume reached a high, with high market activity, accompanied by the recovery of the financial market following Trump's election victory, and the overall cryptocurrency market sentiment reversed and rebounded. As of November 8, the trading volume of large transactions has reached 6.47 trillion SHIB, and these large transactions have driven the recent price increase.
And since breaking through $0.000018, the price of Shiba Inu has been on an upward trend. The recent rebound has pushed the price above $0.00002221, an increase of 11.3% in the past 24 hours.
On November 8, Bitcoin trading volume broke through the 60 trillion mark, with a negative price trend, but in the following several days, the price has maintained positive growth.
In early October, the 50-day moving average crossed above the 200-day moving average, signaling a potential bullish trend.
It is worth noting that SHIB has maintained support above $0.0000178 and consolidated at this level, before breaking through $0.000022.
Currently, the RSI is 72.22, indicating that SHIB may be entering overbought territory, and traders are advised to exercise caution.
However, if the bullish momentum continues, SHIB may test the next resistance levels around $0.000023 and $0.000025. Conversely, a pullback may find support at $0.000018, a level that has previously seen consolidation.
Potential Impact of Large Transactions
The increase in large transactions may indicate growing interest from whales. This could also mean that whales are accumulating Shiba Inu, which may suggest confidence in SHIB's long-term potential.
However, this activity may also lead to increased volatility, as significant holders could influence the price direction.
As SHIB approaches key resistance levels, high trading volume could trigger a breakout or potential pullback, depending on whether large holders decide to buy or sell at these levels.
Shiba Inu's price trend and the increase in large transactions indicate the coexistence of bullish potential and cautious sentiment. The current market sentiment is high, but beware of FOMO!
Shiba Inu's Bumpy Road Ahead?
Shiba Inu's current price is $0.00002485, and its recent price action reflects a broader market optimism. The MEME token is currently heading towards a key resistance level of $0.00002976. If SHIB successfully breaks through this resistance, it may reach $0.00003000, a psychologically significant price target that would further solidify its position.
However, the $0.00002976 level has historically been a challenging obstacle, having been tested multiple times without success. If SHIB encounters resistance at this point again, it may retrace to $0.00002267, erasing some of its recent gains. This pullback would test the token's resilience and investor sentiment.
In summary, the Shiba Inu price has surged nearly 50% in a week, reaching a five-month high, forming a bullish "golden cross" pattern, suggesting the potential for further growth. The golden cross has boosted investor optimism, but potential profit-taking and broader market corrections may put pressure on SHIB's price.
For the time being, those who currently hold the asset should hold on to it, and do not actively switch positions, as switching incorrectly can easily affect your mindset. For those with large positions who chased the highs, it is recommended to gradually reduce their positions. Once this market cycle is complete, it is important to carefully review the coins in your portfolio. If they do not see significant gains during this phase, the current bull market may be coming to an end, and it may be time to make decisive moves.
