Would you invest in a Shiba Inu in December? Know These Essential SHIB Price Levels
Momentum in the cryptocurrency market continues to soar, especially due to rapid increases. Shiba Inu (SHIB)has posted an impressive double-digit rise, securing a position just above $0.00001. SHIB’s surge in value has been strengthened by the emergence of a cup and handle pattern, with a potential breakout target expected at $0.000011.
December Market Dynamics
Amid the heat in the cryptocurrency market, attention is focused on Bitcoin’s price trajectory, with the price exceeding $44,000, suggesting that it is likely to surge to $50,000 by the end of the year. Altcoins have shown significant performance but continue to trail Bitcoin. This reflects that Bitcoin dominance currently stands at 51.4%, according to data pulled from CoinGecko.
Shiba Inu’s upward trajectory
SHIB’s recent surge, up 15.65% after breaking a long-term downtrend line, signals a significant change in market dynamics. For an extended period of time, SHIB faced resistance at $0.0001, hindering the price movement. However, breaking this barrier has paved the way for a more optimistic outlook, potentially inviting more buyers into the market and creating an upward trend targeting $0.0001.
Metrics and Insights
The Relative Strength Index (RSI) has entered overbought territory above 70, confirming SHIB’s bullish momentum. Traders are advised to closely monitor RSI trends and anticipate retracements indicated by a move back towards the neutral zone.
The moving averages (MAs) on the chart converged, further strengthening SHIB’s bullish trajectory. The recent bullish crossover with the 21-day exponential moving average (EMA) surpassing the 200-day EMA reinforces the bullish narrative.
However, the expected crossover between the 50-day EMA and 200-day EMA is poised to trigger the next breakout, suggesting the importance of higher support levels, especially above $0.00001, to sustain accumulated gains and set the stage for an upward move. We are aiming for $0.00002 or higher.
Also Read: Dogecoin vs Shiba Inu: A Comprehensive Guide to Investing in Memecoin
Cup and handle pattern analysis
The Moving Average Convergence Divergence (MACD) indicator further supports SHIB’s upward trend and represents a short-term and long-term buy indicator. In particular, the validation of the cup and handle pattern on the 4-hour chart has the potential for SHIB to rise 19% to $0.000011. This pattern predicts a bullish breakout with a target price equal to $0.0000095, the expected cup height above the neckline resistance.
Trader’s Strategy and Key Levels
Traders identifying the cup and handle pattern initiated a new long position above the neckline resistance and used a strategic stop loss just below this point. A profit booking strategy can be initiated once a profitable position is reached, but considering the analysis, it may be prudent to maintain the upward trend targeting $0.000011 in future sessions.
$0.00001 appears to be an important support level in case of a sudden trend reversal. Traders are also advised to closely monitor key moving averages, including the 21-EMA, 50-EMA, and 200-EMA, for potential market clues while trading SHIB.