The Shiba Inu (SHIB) meme coin has been gaining attention as its market cap reached $8.52 billion, marking an impressive 8.94% surge last week. As the recovery run in SHIB gathers pace, analysts and traders are now watching closely for the possibility of a breakout that could propel the token into a full-scale bull run.
Shiba Inu Teases Triangle Breakout
The four-hour chart shows Shiba Inu in the middle of a recovery rally, but it faces stiff resistance. A double-bottom reversal from $0.0000130 sparked the upward movement, which has been following a local support trendline. However, SHIB is now grappling with a confluence of resistance, creating a sideways price movement.
The key challenge lies in the overhead resistance around the 61.80% Fibonacci retracement level, which coincides with the psychological barrier at $0.000015. Additionally, the overhead resistance trendline adds another layer of difficulty for SHIB to break through. The chart reveals a symmetrical triangle pattern, a sign of a potential breakout on the horizon.
Despite the obstacles, Shiba Inu has surpassed its 50, 100, and 200-day exponential moving averages (EMAs), signaling a bullish crossover. Notably, the 100 and 200-day EMAs are on the verge of a golden cross, a powerful bullish indicator that often precedes upward price action.
Can Shiba Inu Hit $0.000020?
As of now, Shiba Inu is trading at $0.00001444, down 0.35% intraday from its opening price of $0.00001448. Despite this slight dip, the underlying bullish momentum remains strong. The consolidation of SHIB above the 50% Fibonacci retracement level at $0.00001427 suggests the token is gathering strength for its next move.
The symmetrical triangle on the four-hour chart supports a potential bullish breakout. The relative strength index (RSI) also hints at growing bullish momentum, as the bearish cycle has failed to break through the 50-day EMA. If SHIB can sustain its bullish momentum, the double-bottom reversal could push the token past its resistance trendline, sparking a rally toward new highs.
Should Shiba Inu break out of its current pattern, Fibonacci levels point to price targets of $0.0000160 and $0.00001727. An extended bull run could even target the 1.618 Fibonacci level at $0.000020, a key psychological mark for investors. However, reaching this level will likely depend on broader market conditions and a recovery in the crypto space.
Support Levels to Watch
In the event of a pullback, Shiba Inu has several key support levels that could provide stability. The 50%, 38.20%, and 23.60% Fibonacci retracement levels are important to watch, with prices at $0.00001427, $0.00001356, and $0.00001229, respectively. Holding above these levels will be crucial for maintaining the overall bullish outlook.
Also Read: Peter Schiff Critiques Bitcoin – Why Shiba Inu Could Be His Next Investment Opportunity
Shiba Inu’s recovery run has captured the attention of traders and analysts alike, with the potential for a breakout rally on the horizon. While SHIB faces resistance at key levels, the technical indicators suggest that a bullish breakout is possible. A move beyond $0.0000160 could open the door to even higher targets, with $0.000020 as the ultimate goal. However, investors should remain cautious, as the broader market conditions will play a significant role in determining whether SHIB’s rally can continue.
For now, all eyes are on the symmetrical triangle and the potential for Shiba Inu to break free from its current range, potentially igniting a new wave of bullish momentum.
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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