Dog-themed cryptocurrency Shiba Inu (SHIB) has flashed a key technical signal — a golden cross — on its four-hour chart, fueling optimism among traders and investors.
This bullish crossover occurs when the short-term moving average (typically the 50-period) crosses above the long-term moving average (typically the 200-period), which is frequently seen as a signal of continued upward momentum.
In the last 24 hours, SHIB has increased by 10%, riding the wave of a larger crypto market boom that has lifted several major altcoins. Bitcoin reached a fresh all-time high as investors piled into risk assets and closed short positions.
card
Over $1.30 billion in crypto positions were liquidated in the last 24 hours, according to CoinGlass. A total of $1.15 billion in shorts accounted for this figure, marking the largest day of short liquidation in four years.
When traders utilize leverage to short a cryptocurrency and the price rises, they buy back from the market to close their bets, pushing the price higher and liquidating more positions.
What's next?
Shiba Inu has increased 20% this month, its strongest performance since November, with prices up more than 10% in the last 24 hours, according to CoinMarketCap data. The gain is consistent with risk sentiment on the cryptocurrency market, with several digital assets recording double-digit gains.
SHIB's impressive month-to-date gain follows a successful defense of the April low at around $0.00001005, indicating the formation of a double bottom pattern on the daily chart. If confirmed, the pattern's resistance is represented by the May high of $0.00001764. A breakout past that level would indicate a significant bull run.
Shiba Inu has broken out of a consolidation range that has held since late May, rising above the daily SMA 50 at $0.0000124. SHIB continues to face a key short-term resistance at the daily SMA 200 of $0.0000149. According to IntoTheBlock, 518.33 trillion SHIB were previously bought by 165,380 addresses in the range between $0.000014 and $0.000019.
