Shiba

Shiba Inu

Divergence

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The <a href="https://u.today/shiba-inu-shib-hits-reset-button-eyes-bullish-comeback" rel="noopener noreferrer nofollow">Shiba Inu</a> (SHIB) cryptocurrency has recently presented a notable price-volume divergence that could signal an essential shift for traders and investors. This divergence, discernible on the current charts, is where the price action forms new highs without the support of increasing volume, indicating a potential lack of conviction behind the upward price <a href="https://www.tradingview.com/" rel="noopener noreferrer nofollow">movement</a>.
Historically, price-volume divergence can be a precursor to a market correction as it suggests the movement is not backed by strong buying pressure.&nbsp;
The divergence comes at a pivotal moment for <a href="https://u.today/shiba-inu-shib-hits-reset-button-eyes-bullish-comeback" rel="noopener noreferrer nofollow">SHIB</a>. Despite the remarkable 19,000% surge in token burn volume reported recently — a first in several months, which usually indicates a reduction in supply that could lead to a price increase — Shiba Inu has not translated this into significant price performance.
Moreover, SHIB has been struggling to sustain momentum to breach the 200-day Exponential Moving Average (EMA), a commonly watched technical indicator that often acts as a dynamic resistance in bearish conditions and support in bullish markets. This EMA is a crucial threshold for SHIB; staying below it may reinforce the bearish sentiment and impede potential rallies.
The juxtaposition of an enthusiastic community engaged in token burns and the sobering technical analysis presents a complex landscape for <a href="https://u.today/heres-who-burned-173-million-shiba-inu-shib-tokens-unexpected-discovery" rel="noopener noreferrer nofollow">SHIB's</a> future price action. As the market at large braces for possible corrections, the ability of SHIB to maintain its current price levels may be tested.
Investors and traders of SHIB should closely monitor these developments. The price-volume divergence, in combination with the token burn surge and the resistance faced at the 200 EMA, lays out a scenario where any bullish news could be quickly counteracted by a broader market downturn or a lack of follow-through in buying pressure.

Shiba Inu (SHIB) Forms Crucial Divergence You Don't Want to Miss

U_Today

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