Shiba Inu's Rally Falters Amid Market Structure Concerns
Shiba Inu's recent market rally is facing significant challenges as its market structure raises concerns about its ability to create a long-term bullish trend. Despite recovering from its August lows, the token still faces multiple technical barriers above its current price.
SHIB has gained around 3% in the past day and is trading at approximately $0.00000535, surpassing the moving average cluster between $0.00000500 and $0.00000507. This region serves as the primary support zone for bulls, who have a clear level to defend thanks to the rising trendline from the August bottom.
However, SHIB has struggled to maintain momentum above $0.00000540, with sellers aggressively opposing its move towards $0.00000620 during the August rally. Before it can retest that prior peak, there will be another significant resistance level created by the major long-term moving average, currently located around $0.00000568.
The momentum indicator also fails to indicate a clear bullish trend, with SHIB trading above the neutral 50 level but far from an extreme reading, as the daily RSI is close to 57.6.