Shiba Inu (SHIB) has made a significant breakout from a Falling Wedge pattern, a classic bullish reversal indicator in technical analysis. The meme coin, which had been consolidating with lower highs and lower lows, has now surged past key resistance levels, igniting optimism for a potential rally.
SHIB Price Poised for a Major Surge
According to crypto analyst Bezos Crypto, Shiba Inu’s breakout signals a strong shift from a downtrend to an uptrend. Historically, similar formations have led to substantial gains for SHIB, making this development noteworthy for traders and investors. The breakout has been accompanied by a sharp increase in trading volume, reinforcing the bullish sentiment. Volume confirmation plays a crucial role in validating such breakouts, as heightened investor participation often translates to sustained price momentum.
$SHIB#ShibaInu in a larger sense
— SHIB Bezos (@BezosCrypto) February 20, 2025
looks to currently broken out
of an extremely notable Falling Wedge pattern &
prices could be set for a run to new All Time Highs
in result!
This run could consist of an over 422% increase
to $0.00008841 & higher…#SHIBARMY #ShibOS #Shibarium https://t.co/UvqhXBtlyA pic.twitter.com/6MnVt0hTF3
If the bullish momentum holds, SHIB could target the projected price of $0.00008841—a staggering 422% increase from its current levels. However, whale activity remains a factor to watch. A recent transaction saw 2.1 trillion SHIB tokens, worth approximately $32.55 million, offloaded, injecting volatility into the price action.
Bitcoin’s Influence on SHIB and Technical Indicators
Shiba Inu’s price movements remain closely tied to Bitcoin (BTC). Historically, meme coins and altcoins benefit from Bitcoin’s bullish trends, as increased market liquidity and investor confidence spill over into the broader crypto market.
From a technical standpoint, several indicators reinforce SHIB’s bullish outlook. The Awesome Oscillator (AO) is transitioning from red to green bars, indicating fading selling pressure and growing bullish momentum. Similarly, the Moving Average Convergence Divergence (MACD) has flashed a buy signal, with the MACD line crossing above the signal line. The green histogram bars further validate strengthening market sentiment, suggesting SHIB could be on the verge of a significant rally.
Potential Risks and Key Levels to Watch
Despite the bullish setup, traders should remain cautious. Crypto markets are inherently volatile, with factors such as regulatory news and shifts in investor sentiment influencing price action. A retest of breakout levels is possible before further upside continuation.
Key resistance levels to monitor include $0.000030, $0.000050, and the all-time high of $0.00008841. On the downside, support at $0.000020 and $0.000015 could act as crucial levels in the event of a pullback.
Additionally, recent data highlights declining futures open interest in meme coins, with SHIB’s open interest dropping by 74.41% and Dogecoin’s by 58.45%. This indicates waning speculative interest, which could impact short-term volatility.
Also Read: Shiba Inu (SHIB) Faces Key Resistance Amid Market Shift and Sustained Outflows
As SHIB navigates this crucial phase, traders will be closely watching its next moves. Will the breakout lead to a historic price surge, or will external factors dampen momentum? The coming weeks will be pivotal for Shiba Inu’s trajectory.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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