Shiba Inu (SHIB) is approaching a critical point, with a potential breakout from a symmetrical triangle formation. Market analyst, Charting Guy has observed that the asset is primed for a significant upward movement, which could see it reaching a price target of $0.00008841, levels last seen in late 2021.
The symmetrical triangle pattern, often viewed as a consolidation indicator, has been forming over the past few months. The lower trendline began taking shape in May, while the upper trendline developed following a sharp price drop from SHIB’s yearly high of $0.000045 in March 2023. As these trendlines converge, they indicate that a breakout could occur soon, either upward or downward.
Key Levels to Watch
Currently, the token is trading at $0.00001444, with Fibonacci retracement levels serving as key points of resistance and support. The 0.236 Fibonacci level acts as a strong support zone for the bulls, who are expected to defend this level if prices move lower.
If the asset breaks upward, it will first encounter resistance at $0.00001643, which represents the highs from mid-August. This is the final barrier before SHIB could challenge the psychological level of $0.00002. After which the next major resistance is at the 0.5 Fibonacci retracement level of $0.00002266, followed by further resistance at $0.00003124 and $0.00003967.
However, one of the strongest resistance points lies between $0.000024 and $0.000030, where a significant number of investors previously purchased large amounts.
According to IntoTheBlock, approximately 143,380 addresses bought 49.33 trillion SHIB at an average price of $0.000027, creating a large sell wall within this range. Overcoming this resistance would place the asset in a position to retest its March high of $0.00004581 and push toward the $0.00008841 target.
On the downside, while a move toward lower support levels of $0.000008411 and $0.000005808 is possible, it remains unlikely. The token has not revisited these lower levels in several months, and the current Relative Strength Index (RSI) reading of 47 suggests market sentiment is neutral but leans toward a potential upward push.
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Bullish Momentum Strengthens
Recent data indicates that buying pressure from bulls has outweighed selling pressure from bears. Since mid-September, daily bullish purchases of the asset have consistently surpassed sales by bearish traders. On September 20, over 3 trillion SHIB were purchased by bulls, outpacing sales by 117.1 billion tokens. This marked the highest buying excess since early September.
Additionally, large transactions involving the token continued to be above 1 trillion tokens daily since September 16, with only one exception on September 18, when the volume briefly dipped to 604 billion tokens.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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