Shiba Inu price rallies 36%, forms Golden Cross; What’s next?

Shiba Inu (SHIB) recently experienced a strong breakout, with the price reaching a five-month high. This 36 percent rally has fueled bullish momentum for the popular meme coin, although the potential for a correction from profit-taking investors is a big risk.

The rally has brought new optimism to the SHIB community, but its continuity is key to determining its next steps.

The Shiba Inu sees bullying

Shiba Innu's 36% rise in the past 24 hours has seen a significant “golden cross”. The 50-day EMA (Exponential Moving Average) crossed above the 200-day EMA, reversing the “death cross” effect seen three months ago. This pattern has historically ended SHIB's struggles and hints at further growth potential for MemCoin.

The golden cross is an important technical symbol, as it often attracts new investors and reinforces existing bullish sentiment. If this trend continues, the Shiba Inu may continue to rise. However, the meme coin needs strong support from market participants to withstand potential profit pressures and key price levels.

More broadly, the Shiba Inu's macro momentum reflects some caution. The current distribution of active addresses shows that approximately 30% of SHIB holders are profitable.

These investors are often interested in selling, which can hurt the coin's price if there is significant selling pressure. This propensity to profit may challenge SHIB's recent bearish trends and limit its ability to continue its rally.

Despite the bearish trend, Shiba Inu's continued growth depends on broad investor confidence and long-term holders holding their positions. If the selling begins to moderate the buying pressure, MemCoin may face a hurdle especially as it nears the resistance level.

SHIB Price Prediction: Struggle ahead

Currently trading at $0.00002583, Shiba Inu's recent price action indicates broad market optimism. MemCoin is now looking to move towards $0.00002976, a critical resistance level. If SHIB can break through this resistance, it could reach $0.00003000, a psychologically significant price target that will further strengthen its position.

However, the $0.00002976 level has historically been a challenging barrier, having been tested many times without success in the past. If SHIB encounters resistance at this point, it could return to $0.00002267, erasing some recent gains. This pullback serves as a test of the coin's resilience and investor sentiment.

A decline above $0.00002267 could undermine the current bullish outlook, leading to further losses. Such a change could signal the end of the rally, which could lead to caution among investors and possibly a return to Shiba Inu trading lows.