Shiba Inu (SHIB) Breakout Targets Massive 470% Surge as Key Bullish Indicators Align, Says Analyst

• Shiba Inu targets 470% gains as it nears the end of a falling wedge consolidation phase.
• On-Balance Volume and RSI signal buyer interest remains, supporting a potential SHIB breakout.
• SHIB must surpass the $0.00000900 resistance to confirm a bullish reversal and rally higher.

Shiba Inu’s breakout could lead to substantial upside movement, according to crypto analyst JavonTM1 on X. He points to a potential 470% target at $0.000081 for Shiba Inu (SHIB), fueled by a key breakout. The cryptocurrency’s current setup suggests a bullish reversal, which could result in another price surge if buyers step in. JavonTM1’s analysis identifies notable trends and patterns in SHIB’s recent performance, paving way for possible upward movement if the breakout continues.

Key Patterns Supporting SHIB’s Bullish Potential

The price of SHIB is moving within a falling wedge, a bullish reversal pattern. Since April 2023, the price has been consolidating between two converging trendlines. It remains close to the lower boundary, suggesting the consolidation period is nearing an end. 

Falling wedges typically signal an upward breakout once the price exits the consolidation phase. A previous breakout, similar to the current setup, occurred in early 2023, where SHIB rose sharply after forming a bullish pennant.

The current technical structure points toward a possible upside, with resistance levels at $0.00000900 and $0.00001000. These levels must be surpassed to confirm the breakout, potentially leading to a significant rally.

Indicators Signal Bullish Reversal Could Be Imminent

Key indicators like On-Balance Volume (OBV) and the Relative Strength Index (RSI) are supporting the bullish outlook. The OBV stabilized after a peak in early 2023, indicating buyer interest is still present, despite price consolidation. 

A stable OBV during a period of falling prices often hints at a reversal. Additionally, the RSI, currently at 50, remains neutral, which means SHIB could break either way. However, the combination of a stable OBV and the falling wedge pattern points to a likely bullish breakout.

Moving Averages and Resistance to Watch

A chart from Santiment provides more insights, showing SHIB’s price movements alongside key moving averages. A death cross, where the 50-period moving average crosses below the 200-period moving average, occurred in June, indicating bearish momentum. Since then, the price has remained below both averages, suggesting downward pressure.

Notably, the price has stabilized near $0.00001300, showing a decrease in selling pressure. However, for a bullish reversal, SHIB must break above the $0.00001500 resistance and regain the moving averages. Failure to do so could result in continued consolidation.