Shiba Inu (SHIB) has captured investor attention with a significant price surge, climbing 20% in July and posting a 10% gain in the last 24 hours alone. This rally is underpinned by a classic bullish technical indicator—the ‘golden cross’—sparking discussions about the token’s near-term trajectory.
The Technical Picture: A Golden Cross Emerges
On its four-hour chart, SHIB has formed a golden cross, a technical pattern that occurs when a shorter-term moving average (the 50-period) climbs above a longer-term one (the 200-period). Traders often interpret this crossover as a potential confirmation of a sustained uptrend and a shift in market momentum from bearish to bullish.
SHIB/USD 4-Hour Chart, Courtesy: TradingView
Market Dynamics Fueling the Rally
The meme coin’s ascent isn’t happening in isolation. It coincides with a powerful rally across the wider cryptocurrency market, which saw Bitcoin reach a new all-time high. A significant catalyst was a massive short squeeze. According to data from CoinGlass, over $1.300 millones in leveraged crypto positions were liquidated in a single 24-hour period. A staggering $1.150 millones of that total were short positions—bets against the market—marking the largest single-day wipeout for short sellers in four years. This cascade of liquidations forced traders to buy back assets to cover their positions, adding powerful fuel to the price surge.
Key Price Levels to Watch
With the recent gains, traders are now closely monitoring key price levels. SHIB successfully defended its April low of approximately $0,00001005, potentially forming a ‘double bottom’ pattern—a bullish reversal indicator.
The token has now broken through the 50-day Simple Moving Average (SMA) at $0,0000124. The next significant hurdle is the 200-day SMA, currently sitting at $0,0000149.
On-chain data from IntoTheBlock highlights a substantial resistance zone ahead. Approximately 165.380 wallets previously acquired 518,33 trillion SHIB in the range between $0,000014 and $0,000019. This ‘supply wall’ could present a major challenge, as holders in this range may look to sell as the price approaches their break-even point.
As Shiba Inu navigates these critical levels, the combination of a bullish technical signal and strong market-wide momentum has placed it firmly back on the radar for crypto investors.
Disclaimer: This article is for informational purposes only and should not be taken as financial advice. Always conduct thorough research before making investment decisions.
