Shiba Inu Price Stabilizes Above $0.0000810, Bulls Eye Major Breakout

Shiba Inu (SHIB) has finally triggered its first notable bullish signal in weeks. The shorter-term Simple Moving Average (SMA) with a period of 23 days has crossed above the other SMA with a period of 50 days.

Critical Resistance Wait At $0.0000900

Based on data presented by Trading View, SHIB currently trades at $0.0000870 after stabilizing above $0.0008100, which represents a region of convergence for the 50-day SMA and various shorter-term EMA values. This is noteworthy as it is only the first time since October when such a convergence occurred and prices surged by 20%.

The next major target, according to analysts, is the 200-day EMA at the price of $0.0001054, which is about 22% higher than the current levels. Before that, there is a crucial resistance level of $0.0000900 that SHIB needs to break through to have a possible breakthrough. Although there have been several red candles in the recent trading sessions, the overall positive structure is still in place as long as the price is above $0.0000810.

The market cap of the coin is currently at $5.11 billion, placing it below Avalanche and DAI. However, in the past, SHIB has recorded higher market caps during its momentum phase, and, therefore, suggesting that this move is more about technical setups than meme-driven hype.

Also Read | Shiba Inu Eyes $0.00001000 as Buying Pressure Returns

Shiba Inu Faces Major Supply Squeeze

As indicated in a recent update from TKResearch Trading, Shiba Inu is currently undergoing an intense supply squeeze as large holders are managing Shiba Inu liquidity. The breakdown shows a circulating supply of 589.24 trillion SHIB, with 290.4 trillion held on exchanges. 

This leaves a net circulating supply of only 289 trillion $SHIB in the market, thereby emphasizing the limited tokens available. This could have implications regarding the price stability and subsequent upward movement based on the demand in the market, despite the liquidity held by the exchanges.

Worth mentioning is the fact that the market conditions are aided by supply factors. Large holders control the liquidity, and only 289 trillion units of SHIB are circulating in the market, aside from exchanges.

If SHIB continues with this kind of movement and volume accompanying it, then the automated trading programs will likely support the movement regardless of it being a “golden crossing” or not. For the time being, the Shiba Inu coin is likely to experience the initial stage of a rally.

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