SHIB Price Primed for Breakout? Traders Eye Key Resistance Levels
NOIDA (CoinChapter.com) — Shiba Inu (SHIB) has been making headlines with its recent price action. On Oct. 23, the token saw a 3.16% drop to $0.00001764, following a notable increase in its burn rate. Over 27 million SHIB tokens were burned, representing a 6750% rise.
While this burn rate spike has led to increased speculation of future price gains, traders have started bullish on SHIB’s potential recovery, expecting a possible upward movement based on technical indicators.
SHIB’s Breakout: Will Bulls Finally Take Control?
The recent SHIB price action has caught the attention of traders and analysts alike, with many pointing to bullish signs that suggest the potential for further gains. A trader going by the moniker Crypto Sheriff outlined price targets in a recent tweet, setting goals of $0.00002, $0.0002, and an ambitious $0.001.
A trader set some fancifully high SHIB price targets.
While the long-term target of $0.001 appears overly optimistic, the nearer-term targets align with ongoing market sentiment and the token’s technical structure.
Another analyst, Vibranium Capital, shared a detailed weekly chart highlighting a key breakout from a significant resistance line. This resistance line, which held SHIB down for 800 days, has now flipped into support, a signal often viewed as bullish.
Another analyst noted that the current consolidation phase could propel the memecoin higher.
Vibranium’s chart also illustrated a retest of the major pivot level at $0.00002257, which successfully held, reinforcing optimism that the token could be on the verge of a broader rally.
The analyst community, however, remains cautious. While these technical breakouts offer potential, the broader market conditions must be favorable for SHIB to sustain upward momentum.
In particular, the current accumulation phase may persist in the short term, leaving SHIB price to consolidate around support levels before making significant upward moves.
Sheriff and Vibranium’s analysis points to bullish potential, but confirming these patterns will be crucial for traders looking for a continued rally. Market participants await a solid confirmation above key resistance levels to support the bullish sentiment.
Technical Setup Could Help Add Bullish Cues
Meanwhile, the SHIB USD pair has formed a bullish technical setup called the ‘ascending triangle.’
The pattern occurs when a horizontal resistance line connects swing highs while an ascending trendline links higher swing lows. This setup suggests increasing buying pressure as the price approaches the resistance level.
At the moment, SHIB price is testing the upward-moving trendline of the pattern as support, and a rebound from here would likely help Shiba Inu price breakout from the setup.
SHIB USD pair formed a bullish setup with a 50% upside target. Source: Tradingview
The significance of this pattern lies in the potential for a breakout. A surge in trading volume as the price nears the resistance level typically confirms the likelihood of a breakout above it.
The ascending triangle formation indicates that buyers are gaining strength, and a successful breakout could lead to further upward momentum for the SHIB USD pair. Moreover, the technical setup provides a clear framework for assessing potential price movements in the near term.
In technical analysis, the pattern’s price target is calculated by measuring its height and projecting it from the breakout point. For the Shiba Inu token, this calculation suggests a price target near $0.0000262, a 50% spike from the current level.
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