The Shiba Inu (SHIB) cryptocurrency is displaying signs of renewed strength and potential for upward momentum as its price recovers from a crucial support level.
The recent price action saw SHIB find solid buying interest at the $0.000012 level, establishing it as a significant foundation. This zone acts as a critical threshold, with the trading range above offering near-term support.
Adding to this support layer is the 50-day Exponential Moving Average (EMA), aligning near the $0.000012 mark and reinforcing its importance. However, SHIB faces notable resistance overhead, particularly at the $0.000014 price point which must be breached to confirm sustained bullish momentum.
Further adding complexity, the 100 EMA presents a substantial barrier near $0.0000135, potentially hindering upward movement. Failure to maintain support above the 50-day EMA risks a test of the deeper support area between $0.0000118 and $0.0000115. Such a retest could expose the token to increased selling pressure.
The formation of a potential price squeeze, identified by converging technical indicators, suggests heightened volatility could emerge for SHIB in the near term, making the price action around these key levels critical for determining the next trend direction.