Shiba Inu Death Cross Signals Wrong as 5% Rally Brings $0.000025 Resistance Within Reach

Shiba Inu shocked traders with a 5% rally, countering the bearish signals of its recent death cross. Approaching resistance near $0.000025, SHIB’s ability to maintain momentum could mark the start of a significant recovery.

Death Cross Signals Bearish Trends for Shiba Inu

A "death cross," when a lower-order moving average dives below a higher-order one, was visible a few days ago on the price chart of the Shiba Inu (SHIB) token.

The strength of a downhill trend is typically indicated by this. The 23-day moving average fell below the 50-day moving average in this instance. Many market participants interpreted this as a precursor to a medium-term decline.

Shiba Inu's 5% Rebound Defies Bearish Expectations

However, markets are seldom that straightforward. Shiba Inu shocked everyone with a 5% rally after finding a local bottom above $0.00002 in less than a week.

The coin is currently around important resistance levels; therefore, we can no longer focus on bearish probabilities but on growth paths due to its rapid rebound.

Key Resistance Levels at $0.000025 Hold the Spotlight

Per U.Today, at their present positions, the 23-day and 50-day moving averages form a multi-tiered framework of possible hurdles. These two positions, $0.00002385 and $0.00002556, are similar to a key zone where price action could accelerate.

In the middle of these two levels lies the $0.000025 mark, a significant resistance level that may serve as a rallying point for additional price gains.

Shiba Inu Targets $0.00003 for a 30% Rally

Overcoming this barrier may indicate strength enough to propel the token into uncharted regions.

Significantly, a 30% increase from the current price would be possible at the $0.00003 level, making it an important target. At this point, the Shiba Inu will have entered recovery mode, demonstrating its ability to disregard technical warning flags.

However, getting better isn't a given. Whether SHIB maintains its present momentum or falls under fresh selling pressure will largely be determined by the interaction between moving averages and resistance levels.

Shiba Inu's current position is intriguing; it seems to be juggling both bearish technical signs and these sudden surges in value.