Breakout Confirmed: Shiba Inu Price Set For A Possible 73% Surge
February 14 2024 - 11:30AM
NEWSBTC
Over the past seven days, the Shiba Inu price has shown strong
signs of a bullish reversal. A technical analysis of Shiba Inu
(SHIB) against the US Dollar (USD) reveals a compelling narrative
of a breakout from a bearish pattern that could signal a strong
bullish reversal. Shiba Inu Price Confirms Breakout Since
mid-December 2023, SHIB has been trading within a descending
parallel channel, as observed on the daily chart. This channel,
characterized by two parallel downward-sloping trendlines, has
framed the price action, creating a series of lower highs and lower
lows—a classic bearish signal within market structure. The breakout
from this channel occurred on Wednesday last week, February 7, with
a decisive candle close above the upper trendline, a movement that
is often indicative of a change in market sentiment. Remarkably,
the price has also surged above the 200-day Exponential Moving
Average (EMA). With this bullish move, the price also shot above
the 20, 50 and 100-day EMAs, suggesting a strong shift in
momentum. The current breakout is particularly significant
because it mirrors a historical price movement from October 2023,
where SHIB also broke out of a descending channel and experienced
an almost 80% increase in value over 59 days. Related Reading:
Shiba Inu Records 2,500% Spike In Whale Activity, SHIB Price About
To Skyrocket? Investors and analysts closely monitor such patterns,
as historical price actions can often repeat or rhyme in financial
markets. If SHIB bulls can manage a similar rally, they could
target the 0.786 Fibonacci retracement level at $0.00001525,
marking a possible 73% rally. In terms of other targets, the
Fibonacci retracement levels drawn from the previous high to the
low of the channel indicate significant levels of potential
resistance and interest. The 0.618 Fibonacci level, often referred
to as the ‘golden pocket,’ is particularly noteworthy as a key area
where we might expect some selling pressure. Currently, the 0.618
level lies at approximately $0.0000132, and the price is
approaching this level with increased volume, signaling strong
buying interest. Before that, the Shiba Inu price needs to overcome
the 0.382 Fib at $0.00001049 and the 0.5 Fib at $0.00001188.
Related Reading: Shiba Inu On Cusp Of Lunar Launch As 1.3 Trillion
SHIB Barrier On Crosshair The Relative Strength Index (RSI) on the
daily chart has moved above the midpoint of 50, which further
validates the bullish momentum as it suggests that the buying
pressure is outweighing the selling pressure. Bullish Continuation
Following Retest? On the weekly timeframe, the RSI here also
indicates a neutral momentum. The weekly SHIB/USD chart shows the
breakout from a descending triangle pattern in early December 2023,
followed by a successful retest at the end of January this year.
The RSI on a weekly basis is now in neutral territory (at 54.6),
ready for a renewed rally. The weekly chart also displays the next
crucial resistance which sits at $0.00000970 (the 50-week EMA). A
weekly close above this threshold would further bolster the bullish
case. Ultimately, SHIB bulls could target the 100-week EMA, which
stands at $0.00001334 and almost perfectly aligns with the “golden
pocket” in the daily chart. The volume profile supports the
breakout with a notable increase in buying volume as the price
exited the channel. This adds credence to the sustainability of the
breakout. Overall, it is important to note that while a 73% rally
is projected based on the pattern’s measured move, however,
external factors could influence the actual price movement. Key
resistance levels, such as the aforementioned Fibonacci levels, and
the psychological round numbers should be monitored for potential
pullbacks or consolidation. Featured image created with DALL·E,
chart from TradingView.com
SHIBA INU (COIN:SHIBUSD)
Historical Stock Chart
From Jun 2024 to Jul 2024
SHIBA INU (COIN:SHIBUSD)
Historical Stock Chart
From Jul 2023 to Jul 2024