What specific resistance levels should investors monitor for Shiba Inu after the possible confirmation of the golden cross?

Answered at Nov 05, 2024

Key Resistance Levels for Shiba Inu (SHIB)

Investors in Shiba Inu (SHIB) should keep a close eye on specific resistance levels, especially as the potential golden cross formation approaches. A golden cross, where the 50-day Exponential Moving Average (EMA) crosses above the 200-day EMA, often signals a bullish trend. Here are the critical resistance levels to monitor:

1. Fibonacci Resistance Levels

  • $0.0000288: This is the 0.382 Fibonacci resistance level. SHIB needs to break through this level to confirm a breakout from its current descending pattern (source).
  • $0.0000355: Known as the golden ratio barrier, surpassing this level is crucial for nullifying the ongoing corrective phase and indicating a stronger bullish trend (source).

2. Psychological and Technical Resistance

  • $0.00002000: This level is a significant psychological barrier. A rise above this mark would strengthen the bullish outlook and increase the chances of further gains (source).

3. Market Sentiment and Bitcoin Influence

  • Bitcoin's Stability: SHIB's potential rally is heavily influenced by Bitcoin's performance. Bitcoin needs to maintain stability above $70,000 to bolster market confidence and support SHIB's upward movement (source).

Technical Indicators and Market Dynamics

  • MACD and RSI: The Moving Average Convergence Divergence (MACD) on the daily chart shows a bullish trend, while the Relative Strength Index (RSI) remains neutral, indicating balanced market sentiment (source).
  • Death Cross on 4H Chart: A death cross has appeared on the 4-hour chart, suggesting a potential short-term downturn. However, a golden crossover might follow, indicating a shift towards bullish sentiment (source).

Conclusion

Monitoring these resistance levels and technical indicators is crucial for investors looking to capitalize on potential price movements in Shiba Inu. The interplay between these levels and broader market conditions, particularly Bitcoin's performance, will significantly influence SHIB's trajectory.