Cryptocurrencies have changed their direction in the last several weeks, after being on a strong bearish trend for a few months. They stopped declining in July, meaning that they weren’t putting lower lows in place, which was the first sign of a bullish reversal before the big shift higher.
Stranger cryptocurrencies such as the Doge coin and Shiba Inu coin were feeling even more bearish during the decline, unable to make any bounces, especially in July. They even missed out on the crypto reversal at the end of July, showing no signs of life whatsoever until the end of last week.
SHIB/USD has broken the triangle to the upside finally
Shiba Inu coin gave the first sign of life last Saturday when it jumped higher, gaining around 50% in value. It bounced above the moving averages on the daily chart, as shown above, breaking the descending triangle as well. Now it seems like the 50 SMA (yellow) has turned into support for SHIB/USD, which supports the idea of a buy signal.
Shiba Inu Analysis – SHIB/USD Live Chart
On the H4 chart, we see that the smaller moving averages such as the 20 SMA (gray) and the 100 SMA (green) were providing resistance at the top and pushing the price lower during July. But, buyers pushed above them toward the end of last week and they pushed above the 200 SMA (purple) as well, without finding much resistance there.
The 20 SMA holding as support for SHIB/USD on the H4 chart
Shiba Inu gained nearly 50% in value during the jump. It retreated lower the next day, but the 20 SMA (gray) turned into support right away and it started pushing the price higher. This shows that buyers are not waiting for deeper pullbacks, instead, they are jumping in at the first opportunity.
This indicates that the buying pressure is quite strong, so we are trying to buy this crypto, hoping for another jump higher, since all cryptocurrencies are taking turns at doing that. In the last two days, we saw Cardano jump higher and make some decent gains, while yesterday we saw Ripple coin jump around 25 cents, so the crypto market is bullish again.
SHIB/USD
