Meme coins, such as Dogecoin and Shiba Inu, finally started to catch up with the broader crypto market, after failing to turn bullish last month. These cryptocurrencies were really bearish in the three preceding months, losing around 2/3rds of their value, crashing lower, with no signs of buyers wanting to fight the decline.
The situation continued like that, even after the bearish momentum ended in the crypto market. Meme coins were finding it hard to turn bullish, after being really weak for more than three months. Moving averages were providing resistance for Shiba Inu on the daily chart, with the 20 SMA (gray) and the 50 SMA (yellow) pushing the price lower.
That continued until the end of the first week of August, when we saw a jump in meme coins. Shiba Inu bounced from $0.0000060 to $0.0000089, which means a gain of nearly 50% in value in a few trading sessions. But, there was no follow-through in the next days, with the price trading in a range for Shiba while other cryptos were continuing the bullish trend and pushing to new highs.
However, over the weekend, we saw a second bullish move in SHIB/USD, which took the price to $0.0000095, pretty close to the big resistance area around $0.000010. The price broke above the 20 and the 50 SMAs on the same day, as shown on the daily chart above.
But as mentioned, there was no follow-through, and the price was trading in a range again, just above the 50 SMA, while the rest of the crypto market was making further gains. That continued until last weekend, when the bullish momentum resumed again, and Shiba Inu increased to $0.0000095.
But, yesterday we saw a retreat in the crypto market, and the price action has been threatening with a proper reversal. SHIB/USD retreated lower, losing more than 15% in value and falling back to the 50 SMA. But, that moving average is acting as support once again, and the decli0ne has stopped now. This looks like a good opportunity to buy Shiba Inu, with a stop below the moving averages at $0.0000069.