Shiba Inu, a popular cryptocurrency token, experienced a notable increase in short-term on-chain activity, soaring by 351% within an eight-hour window. This dramatic rise coincided with a significant price rebound after attempting to surpass the $0.00000620 mark, only to drop sharply. The uptick suggests a resurgence of volatility for the digital asset.
Holding Steady Above the 200-Day Average?
Despite the recent dip to $0.00000555, SHIB’s trading price settled around $0.00000589. This movement came after testing $0.00000624 on September 23, followed by a retreat of 7.69%. On the subsequent day, however, the token managed a recovery of 2.3%.
Transaction activity remained robust, surpassing previous sessions in September. A critical level in the technical outlook was identified around the 200-day moving average of $0.0000056. Having lingered below this long-term indicator for months, SHIB has now risen above it.
Despite revisiting the same area during the recent correction, no decisive breakdown occurred, suggesting the 200-day average could transform into a support zone.
This retesting did not lead to a lasting breakdown, reinforcing the potential shift from resistance to support. As long as SHIB remains within the $0.0000056 to $0.0000057 bracket, it maintains its recovery trend from September.
Is There Clarity on the Direction?
Currently, there is no clear momentum direction. The Relative Strength Index (RSI) indicates a neutral market, dismissing an overheated condition. Therefore, SHIB’s price has ample room to move in either direction.
The first notable upward resistance is at $0.0000060. Surpassing this threshold could bring the $0.0000062 to $0.0000063 range back into focus. Should SHIB exceed its recent peak, it might reach new highs beyond the August surge.
If the 200-day average fails to hold, the outlook could shift rapidly, with support levels at $0.0000054 and between $0.0000051 to $0.0000052.
On the downside, if the 200-day average doesn’t hold, additional pressure could surface, with the initial support at $0.0000054. Below this, a cluster of moving averages between $0.0000051 and $0.0000052 could serve as new support.
Amidst the recent 351% rise in short-term trading volume, SHIB faces a volatile phase. Despite strengthened technical indicators, recent fluctuations indicate that a stable directional trend is yet to be established. Going forward, market enthusiasts will closely monitor SHIB’s ability to cement its position above crucial moving averages while awaiting clearer directional signals.
