Shiba Inu, the second-largest meme token by market capitalization, has recently broken out of a falling wedge formation, triggering speculation about a potential upward move toward the $0.000015 resistance level. A modest 5.2% gain in the last 24 hours accompanies this technical breakout, as short-term market sentiment for meme coins turns optimistic.
Technical Indicators Suggest Bullish Momentum
Following a rapid rebound from the $0.00001240 support level, SHIB has posted four consecutive daily gains. This price action confirms a breakout from a multi-week resistance trendline, signaling a potential trend reversal. The asset is now trading at approximately $0.00001277 and is testing the 200-day Exponential Moving Average (EMA), a crucial level that often acts as dynamic resistance.
If the price maintains momentum and closes above the 200 EMA, currently near $0.00001297, it could validate the breakout and support further upside. A bullish crossover in the Moving Average Convergence Divergence (MACD) indicator further reinforces the possibility of an emerging uptrend, with both the MACD and signal lines turning positive.
However, some caution remains warranted. The 50-day and 100-day EMA lines are displaying a negative crossover, and unless SHIB sustains its bullish trajectory, a “death cross” between the 50-day and 200-day EMAs could materialize. Continued upward movement would be necessary to avoid this bearish development.
Forecasting SHIB Price Targets with Fibonacci Analysis
Using a trend-based Fibonacci retracement tool, analysts have identified potential price levels for SHIB if the breakout holds. The next key resistance lies at the 23.60% Fibonacci level of $0.00001344. A successful break above this point could clear the path toward the 61.80% retracement level at $0.00001531, representing a potential upside of approximately 20% from current prices.
Historically, falling wedge breakouts often lead to a retest of previous swing highs. In SHIB’s case, this would place a medium-term target slightly above the $0.000015 psychological threshold. However, if the rally loses steam, the token may revisit the $0.00001240 support zone. A breakdown from this level could lead to a deeper correction toward $0.00001156.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
On-Chain Metrics Indicate Growing Demand
On-chain analysis from IntoTheBlock offers additional support for a bullish outlook. The “In/Out of the Money Around Price” (IOMAP) data shows that SHIB is currently navigating a critical price zone around $0.000013. This level represents a high-activity area where many addresses acquired tokens, suggesting strong interest and potential resistance.
Data indicates that approximately 12.11 trillion SHIB is held by over 18,000 addresses, slightly above the current price, forming a supply zone. However, the volume of SHIB held by addresses currently in profit is significantly larger, indicating growing buying pressure that could facilitate continued upward movement.
As SHIB attempts to build on its recent breakout, the relatively low volume in upcoming resistance zones may further strengthen the possibility of a sustained bullish trend.
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.
Follow us on Twitter, Facebook, Telegram, and Google News
