- SHIB’s price nears a breakout from a falling wedge, indicating a potential bullish reversal in the coming days.
- Analysts predict SHIB could surge 498% if the price breaks out above the descending wedge with increased buying volume.
- Stabilization around $0.000013 signals consolidation as SHIB approaches key resistance levels in both the short and long term.
Shiba Inu (SHIB) is approaching a crucial point, with its price nearing a breakout point. According to a recent analysis from @JavonTM1 on X, the cryptocurrency is trading within a narrowing falling wedge pattern, typically a bullish indicator.
Additionally, a regular bullish divergence has been confirmed, suggesting SHIB could be gearing up for a substantial upward move. With a speculative price target of $0.000081 still within reach, analysts anticipate a possible 498% surge if a breakout occurs.
Falling Wedge Formation Signals Imminent Price Movement
The SHIB price has been consolidating within a falling wedge, characterized by steadily declining highs and lows. Historically, this pattern often indicates a potential bullish reversal. As prices converge at the end of this wedge, the likelihood of an upward breakout increases.
The analysis draws comparisons to previous movements, where SHIB followed a similar trajectory before experiencing a sharp price increase. Should history repeat itself, this could mark the beginning of a new phase of heavy buying pressure.
Source: JavonTM1 on X
The On-Balance Volume (OBV) indicator, included in the analysis, provides further insights into market sentiment. OBV, which measures buying and selling pressure, has shown a decrease in volume during the wedge formation.
However, a reversal in OBV could coincide with a breakout in price, further supporting the bullish outlook. The upcoming days will be critical in determining whether SHIB can break free from the wedge.
Moving Averages Indicate Persistent Bearish Pressure
In recent months, Shiba Inu’s price has remained below both its 50-day and 200-day moving averages, highlighting a bearish trend. These moving averages have acted as resistance levels, with the price unable to cross above either. However, signs of consolidation have emerged, particularly around the $0.000013 level, where the price has begun to stabilize.
Source: Santiment
While the bearish sentiment has dominated the market, the potential for a trend reversal remains. Breaking above these key moving averages could signal a shift in momentum, possibly leading to a sustained upward trend.
Consolidation and Key Levels to Watch
With SHIB’s price currently stabilizing, market participants are closely monitoring key levels. A breakout above the descending wedge, coupled with increased volume, could be the catalyst for an upward move. However, the price will need to overcome the resistance posed by the 50-day and 200-day moving averages to confirm a reversal.
The next few days are expected to provide clearer signals regarding SHIB’s direction, with both technical indicators and price patterns suggesting a potential breakout.
