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▲ Shiba Inu (SHIB)/ChatGPT generated image
Shiba Inu (SHIB) has completed its most robust technical structure in months, preparing to end its long-term downtrend and enter a full-fledged recovery phase.
Crypto media outlet U.Today reported on May 12 (local time) that Shiba Inu has ended weeks of sideways trading and reached a key resistance zone that will determine its next move. Shiba Inu has shown a gradual upward trend since its March low and is currently trading around $0.0000066. This rebound is significant because, unlike past temporary surges, it has consistently set higher lows, forming a clean upward structure that has secured stability across short-term moving averages.
From a technical perspective, Shiba Inu has maintained its best condition since early March, attempting to break above the 100-day exponential moving average (EMA). The 100-day EMA has been a strong resistance level that has suppressed prices whenever bullish momentum emerged within the previous downtrend. With current trading volume maintaining a healthy level, the Relative Strength Index (RSI) has also risen above the neutral zone, indicating that the price is compressing at the resistance level. This combination of indicators suggests a high probability of increased price volatility in the near future.
The converging wedge pattern observed on the daily chart is also considered an indicator signaling a bullish reversal. As buyers defend higher support levels and push prices up, the probability of a breakout increases as it approaches the resistance line. Bitcoin (BTC) recovering above key moving averages and the overall improvement in risk asset investment sentiment across the market are also positively impacting the recovery momentum in the memecoin market.
If Shiba Inu successfully settles above the 100-day exponential moving average, it will pave the way for entering a much longer recovery phase. Reclaiming this indicator is the first significant bullish trend reversal signal since the March decline, so many investors are closely watching for confirmation of a breakout. With technical stability and overall market tailwinds aligning, Shiba Inu's recovery is expected to gain further momentum.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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