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A few days ago, the price table of Shiba Inu (SHIB) the token showed a “death cross,” which is when a lower order moving average drops below a higher order moving average. This is usually a sign that downward trends are strengthening. In this case, it was the 23-day moving average moving below the 50-day moving average. Many traders interpreted this as a sign of a medium-term downtrend.
But markets are generally not that simple. In less than a week, Shiba Inu found a local bottom above $0.00002, surprising everyone with a rally of over 5%. This rapid rebound has us looking at growth trajectories rather than bearish probabilities, since the token is now near key resistance levels.
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The current position of the 23-day and 50-day moving averages creates a layered structure of potential obstacles. At $0.00002385 and $0.00002556, these points constitute as a critical zone where price activity could resume. Right between these levels is the $0.000025 mark – a key resistance line that could be the focal point of further bullish momentum.
If this threshold is exceeded, it could signal sufficient strength to push the token into new territories.
The $0.00003 level is a big deal, as it is a potential target that would mean a 30% gain from the current price. If Shiba Inu reached this level, it will be in recovery mode, showing that it can ignore technical warning signs.
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But the upward path is not guaranteed. The play between moving averages and resistance levels will likely decide whether SHIB maintains its current momentum or pulls back under further selling pressure.
Right now, Shiba Inu is in a pretty interesting situation, where it’s sort of balancing between bearish technical signals and these unexpected bursts of strength.