- SHIB reclaimed its 200-day moving average and formed a golden cross, signaling potential continuation of its recent bullish momentum.
- Ethereum’s breakout above $3,600 coincided with SHIB’s 20% rise, highlighting their ongoing market relationship.
- SHIB is holding gains above $0.00001500 with increasing volume, indicating strengthened support and reduced risk of immediate reversal.
Shiba Inu (SHIB) gained nearly 20% this week, rising alongside Ethereum’s surge above $3,600. The move confirmed a months-long technical setup, as SHIB reclaimed its 200-day moving average and formed a golden cross between its 23-day and 50-day moving averages. These developments indicate a potential shift in trend for the meme token closely linked to Ethereum activity.
The rally of Ethereum was a major part of the SHIB price change (28 percent). The altcoin went through a resistance break earlier in the week and attracted the re-entry of interest into the market. The price action of SHIB also saw this change, as it moved up steadily as opposed to making random spikes. SHIB followed the trend of Ethereum in the past, and the new foundations did not change this trend.
Long-Term Development Ousts Temporary Shots
As compared to past rallies where the gains were not consolidated, the current breakout in SHIB is also on an ascending trend, as indicated by the price and volume. The token is currently trading at over 0.00001500, which it has not been able to hold since spring. This bears a resemblance to a resurgence of a longer-term bullish trend and is likely to be reinforced by further gains in the event that Ethereum remains more active than the rest of the market.
Source: CoinMarketCap
The golden cross formation, created when the short-term 23-day moving average crossed the 50-day moving average, provides added confirmation for traders watching SHIB’s momentum. This setup typically signals a potential for upward price continuation. Combined with SHIB holding above its 200-day trend line, market sentiment now appears more constructive.
With SHIB firmly above $0.00001500, the next technical resistance lies at $0.00001698. This level remains critical as it represents the last significant threshold before the token’s yearly highs. Rising trading volume supports the idea that buyers are reentering the market with more confidence than in previous months.
