Shiba Inu (SHIB) is making headlines once again, as recent technical analysis reveals a pivotal moment for the popular memecoin. According to market analyst Javon Marks, SHIB has recently breached a significant resistance trendline, which had previously posed a substantial roadblock to its price surge. This breakthrough comes amid a broader rebound in the cryptocurrency market, positioning Shiba Inu to potentially capitalize on this positive momentum.
Previous Analysis – The Falling Wedge Pattern
Just a week ago, Marks highlighted a massive falling wedge pattern forming on SHIB’s daily chart. This pattern, often indicative of a potential bullish reversal, suggested that SHIB was approaching a crucial convergence point. For context, falling wedges are generally seen as a bullish signal, especially after prolonged downtrends. Marks had identified this pattern as a precursor to a potential breakout, forecasting a rally that could target $0.000081.
This pattern emerged after Shiba Inu’s decline from its yearly peak of $0.000045 in early March. As the price action compressed toward the apex of the wedge, it signaled that selling pressure was diminishing, setting the stage for a possible reversal.
Breakout Confirmation A Surge in Momentum
In his latest update, Marks confirmed that SHIB had successfully broken out of the falling wedge pattern. Starting from August 19, SHIB began a notable upward trajectory, recording three consecutive intraday gains from August 19 to 21, with a 6.52% spike during this period. The momentum continued as SHIB surged an impressive 8.82% on August 23, validating the breakout.
This recent price action is particularly significant because falling wedges typically signal bullish reversal patterns, especially after a prolonged downtrend. Marks’ bullish outlook remains intact, with a price target of $0.000081 still in play. He anticipates a potential upside of over 432%, suggesting that the rally towards this target might already be underway.
Volume and RSI – Confirming the Breakout
The breakout is further supported by an increase in trading volume, a critical factor in validating price movements. Higher volume during a breakout indicates genuine buying interest, reinforcing the strength of the move. Additionally, Marks noted a bullish divergence involving the Relative Strength Index (RSI), which aligns with the overall positive sentiment.
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Looking ahead, the next significant resistance level appears to be around $0.000032, which could act as an interim target. If the bullish momentum persists, SHIB might continue its ascent towards the anticipated $0.000081 mark.
As Shiba Inu rides the wave of its recent breakout, investors and enthusiasts are closely watching for further developments. The combination of technical patterns, volume increases, and positive market trends suggests that SHIB could be poised for a noteworthy rally in the near future.
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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