Trying to Buy the Bullish Reversal in Shiba Inu, as MAs Turn Into Support for SHIB/USD
Cryptocurrencies have changed direction in the last few weeks, after being on a strong bearish trend for a few months. They stopped declining in July, meaning that they weren’t making lower lows, which was the first sign of a bullish reversal before the big shift higher.
Stranger cryptocurrencies, such as the Doge coin and the Shiba Inu coin, were feeling even more bearish during the decline, and were unable to make any bounces, especially in July. They even missed out on the crypto reversal at the end of July, showing no signs of life whatsoever until the end of last week.
SHIB/USD has finally broken the triangle to the upside
Shiba Inu coin gave the first sign of life last Saturday, when it jumped higher, gaining around 50% in value. It bounced above the moving averages on the daily chart, as shown above, breaking the descending triangle as well. Now it seems like the 50 SMA (yellow) has turned into support for SHIB/USD, which supports the idea of a buy signal.
Shiba Inu Analysis – SHIB/USD Live Chart
On the H4 chart, we see that the smaller moving averages, such as the 20 SMA (gray) and the 100 SMA (green) were providing resistance at the top and pushing the price lower during July. But, buyers pushed above the resistance towards the end of last week, rising above the 200 SMA (purple) as well, without finding much resistance there.
The 20 SMA is holding as support for SHIB/USD on the H4 chart
Shiba Inu gained nearly 50% in value during the jump. It retreated lower the next day, but the 20 SMA (gray) turned into support right away and it started pushing the price higher. This shows that buyers are not waiting for deeper pullbacks, but are jumping in at the first opportunity instead.
This indicates that the buying pressure is quite strong, so we are trying to buy this crypto, hoping for another jump higher, since all cryptocurrencies are taking turns at doing that. In the last two days, we saw Cardano jump higher, making some decent gains, while yesterday we saw Ripple coin jump around 25 cents, so the crypto market is bullish again.
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