After a period of consolidation, Shiba Inu (SHIB) price has created a powerful chart pattern, signaling a potential bullish momentum that has analysts predicting a breakout toward the psychological $.000020 may be imminent.
This article probes the possibility of a Shiba Inu breakout towards $0.000020 based on the current market conditions, technical indicators, historical performance, and our recent SHIB price predictions.
SHIB burn plan and Shibarium launch finally paying off
Recently, Shiba Inu has experienced a surge in its burn rate, with over 410. 48 trillion SHIB tokens burned so far according to data from Shiba Burn Tracker. The burn initiative aims to enhance scarcity, potentially increasing the token’s value in the long run and it seems to be paying off already.
Additionally, the Shibarium network, Shiba Inu’s Layer 2 solution launched on August 16, 2023, has shown remarkable growth, with daily transactions increasing by 70% and wallet addresses surpassing 1.82 million. This shows a growing investor confidence in Shiba Inu’s ecosystem.
Source: Shibarium – scan data on Shibarium’s daily transcations over the past 30 days.
As the Shiba Inu burn program continues to gather momentum and Shibarium Network continues to grow, SHIB’s price has flashed recovery signals following the prolonged price decline that occurred between March 6, 2024, and August 6, 2024, followed by a period of price consolidation.
Currently trading at approximately $0.00001444, Shiba Inu has experienced an 8.94% increase over the past week, with the overall price trend indicating significant bullish momentum.
Despite Shiba Inu remaining 79.77% lower than its all-time high of $0.0000725 recorded nearly three years ago in October 2021, the price of SHIB has closed above its daily opening price in 49.02% of the days in the past week, reflecting a modest bullish sentiment for the meme coin.
Optimistic builds as a symmetrical triangle pattern forms
The 4-hour and 1-week charts reveal that Shiba Inu is currently consolidating within a symmetrical triangle, characterized by converging resistance and support trendlines as highlighted by the renowned technical analyst Charting Guy (source: X).
$SHIB 📈
THE MEMES ARE READY 🐶 https://t.co/I6duve8dl7 pic.twitter.com/vrL9zHqBTZ
— Charting Guy (@ChartingGuy) September 23, 2024
The down-sloping trendline, which has been forming since May, indicates a gradual price decline, while the up-sloping trendline has emerged following a price dip from its yearly high of $0.000045 in March.
This symmetrical triangle suggests that SHIB is in a critical consolidation phase, which often precedes a price breakout.
The breakout potential is further supported by SHIB bouncing back upwards after hitting the 50% Fibonacci level at $0.00001402 on the 4-hour chart.
Notably, the recent double-bottom reversal pattern from $0.0000130 has propelled the price upward, suggesting a major bullish reversal after the March to August drop may be underway.
Analysts, investors, and traders are closely monitoring this formation, as a breakout from the symmetrical triangle could lead to a substantial upside move.
What RSI and moving averages say about the potential Shiba Inu breakout?
Technical analysis shows that Shiba Inu has surpassed the 50, 100, and 200-day exponential moving averages (EMAs), creating a bullish crossover that indicates strong upward momentum.
The Relative Strength Index (RSI) currently sits at 61.15, reflecting natural market conditions without being overbought or oversold although it could cross into the overbought region soon going by the current trend. However, the weekly RSI sits at 45.15, suggesting that there might be room for upward movement before reaching overbought levels in the long term.
The bullish cycle on the four-hour chart is supported by the growing RSI divergence, indicating potential bullish momentum within the symmetrical triangle pattern. As the price consolidates, the negative cycle has failed to break the 50-day EMA, signaling strength in the bullish trend.
If Shiba Inu can maintain its upward momentum and break through the initial resistance levels, traders may start setting their sights on higher price targets.
Key SHIB price levels to watch as breakout beckons
In terms of Fibonacci retracement levels, the price target for Shiba Inu post-breakout is set at $0.00001508. If SHIB can close above this threshold, it is likely to move toward the next resistance level at $0.0000160.
An optimistic scenario could see SHIB reaching the 1.618 Fibonacci extension level at the $0.00001639 psychological mark. Beyond this level, Shiba Inu could skyrocket towards the 3.168 1.618 Fibonacci extension level at $0.00002063, with the ultimate goal being the previous all-time high of $0.00008841.
However, it’s essential to approach these predictions with caution, as the cryptocurrency market is known for its volatility.
Significant selling pressure is anticipated between $0.000024 and $0.000030, where many investors have placed sell orders. This could act as a barrier to a sustained breakout if buying momentum does not outweigh selling pressure.
However, given the increasing community efforts to burn tokens and reduce supply, alongside the growth of the Shibarium network, Shiba Inu (SHIB) may be well-positioned for a rebound if market conditions align favorably.
