Shiba Inu Completes Bullish Crossover on 1H Chart

Shiba Inu (SHIB) has completed a notable bullish crossover, fueling optimism for a price recovery in subsequent developments.

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Chart analysis shows a bullish crossover between the short-term and longer-term moving averages on lower Shiba Inu timeframes, suggesting the next few hours or days could hold bullish prospects for the meme coin.

• Analysis shows a bullish crossover between the 50- and 23-period MAs on the SHIB 1-hour chart.
• As long as the 23 MA stays above the 50 MA, there is a possibility that Shiba Inu will target higher prices.
• Data shows an almost 20% rise in trading volume to $107.9 million in the past 24 hours, but 13% drop in futures volume.
• Coinglass data suggests dip buying, as spot outflows from exchanges have surpassed inflows in the past 24 hours.

Notably, the recent bullish crossover occurred between the 50- and 23-period MAs on the SHIB/USDT 1-hour chart on March 30. The latter moved above the former, indicating seller exhaustion and a possible upward momentum shift.

However, while such crosses are notable, they can be deceptive, especially when appearing on lower timeframes. Waiting for higher-timeframe confirmations or combining with other indicators could provide a clearer view of the market before any decisive move.

Moreover, some argue that crossovers are lagging indicators. Before the crossover, Shiba Inu had rallied 7% from $0.00000575 to $0.00000616 on Monday and has since peaked. As such, this party believes the cross may represent a way for the market to reflect this price action that has already played out.

Nonetheless, the general consensus is that moving average crossovers hold bullish implications for an asset. As long as the 23 MA stays above the 50 MA, there is still a possibility that Shiba Inu will react to this development.

In the meantime, SHIB trades at $0.000005903, down 3% in the past 24 hours. An attempt to recover yesterday was unsustainable, with the token again pegged back by a descending resistance trendline.

Meanwhile, CoinMarketCap data shows an almost 20% rise in trading volume to $107.9 million in the past 24 hours, signaling increased market participation.

Further analysis narrowed this increase to the Shiba Inu spot volume, as futures volume has dropped 13% in the same timeframe. This disparity shows a lack of leveraged interest in Shiba Inu, reflected in a 7% drop in open interest to $52.74 million in the past 24 hours.

Conversely, spot holders are increasingly making moves. Coinglass data shows they may be buying the dip, as spot outflows from exchanges have surpassed inflows in the past 24 hours.

Such accumulation activity reemphasizes the confidence in Shiba Inu’s future trend beyond the current downtrend. Interestingly, this trend has persisted, as The Crypto Basic reported a 97.177 billion SHIB outflow from exchanges in 24 hours yesterday.

While its price has not reacted to these accumulations or the hourly bullish cross, Shiba Inu has held above the $0.0000056 support level, providing a solid base for a rebound at any time.

If market conditions stabilize, SHIB could target a horizontal resistance between $0.00000616 and $0.00000640. Defying this sets it on course for a multi-month descending trendline, currently around $0.0000069. An over 50% rally would follow if Shiba Inu could pull this off.