Usman Salis
Shiba Inu (SHIB) just flashed a golden cross on its 4-hour chart, and traders are getting excited. The meme coin pumped 10% in the last 24 hours, riding the wave of a massive crypto rally that's lifting everything from Bitcoin to altcoins.
Shiba Inu (SHIB) Price Breaks Out After Months of Sideways Action
A golden cross happens when the short-term moving average (usually 50-period) crosses above the long-term one (200-period). It's one of those signals that gets traders' attention because it often means the party's just getting started.
The timing couldn't be better for SHIB holders. Bitcoin just hit a fresh all-time high, and the entire crypto market is going wild. Over $1.3 billion in positions got liquidated in the past day, with shorts taking the biggest hit at $1.15 billion – the largest short squeeze we've seen in four years. When leveraged traders bet against crypto and prices go up, they're forced to buy back their positions, creating a snowball effect that pushes prices even higher.
Shiba Inu (SHIB) Price Shows Strongest Month Since November
This month has been SHIB's best performance since November, with the token up 20% month-to-date. The recent rally isn't just random either – SHIB successfully defended a key support level around $0.00001005 from April, creating what technical analysts call a double bottom pattern.
If this pattern plays out, SHIB could target the May high of $0.00001764. Breaking above that level would be huge and could signal the start of a proper bull run. The token has already broken out of a consolidation range that held it back since late May, pushing above the daily 50 SMA at $0.0000124.
Shiba Inu (SHIB) Price Faces Major Test at Key Resistance
Here's where things get interesting. SHIB is now staring down its next big challenge – the daily 200 SMA at $0.0000149. This level has been acting as resistance, and breaking through it won't be easy.
According to IntoTheBlock data, 518.33 trillion SHIB tokens were bought by 165,380 addresses between $0.000014 and $0.000019. That's a massive wall of potential sellers who might want to take profits as the price approaches their buy zones.
The golden cross formation, combined with the broader crypto rally and successful defense of key support levels, suggests SHIB might have more room to run. But traders should keep an eye on that resistance zone ahead – it could determine whether this pump turns into a sustainable rally or just another false start.
Usman Salis
