Shiba Inu (SHIB) is currently consolidating within a falling wedge pattern, a technical formation that typically signals a potential bullish reversal.
Its 50-day moving average is acting as a key resistance point above the pattern. A breakout above this level could signal the start of a bullish trend. Meanwhile, a breakdown of the support level may lead to further price declines.
Shiba Inu Price Forms Falling Wedge Pattern, Rally Looming?
According to analyst “The Crypto Express,” the Shiba Inu price has been forming lower highs and lower lows, creating a falling wedge pattern. This pattern is typically seen as a bullish reversal setup. The price is currently testing the upper trendline, which serves as a key resistance zone.
The immediate resistance level is around $0.00001280 to $0.00001300. If SHIB breaks above this zone successfully, it could trigger an upward move. However, the 200-day exponential moving average (200 EMA) remains an obstacle. A close above this moving average could confirm bullish momentum.
On the downside, SHIB price has support around $0.00001150 to $0.00001160. If the Shiba Inu price fails to hold this level, further declines may follow. A breakdown below this support could invalidate the bullish wedge setup and push the price lower.
Will SHIB Price Soar Above $0.00008517?
Another technical pattern observed is the cup-and-handle formation, which is considered a bullish continuation pattern. Analyst CryptooELITES called attention to this formation on X today, noting that Shiba Inu is now at a favorable buying zone.
The analyst projects a 12X price rally for SHIB, highlighting several resistances it must overcome.
A key resistance is $0.00003117, which aligns with the 0.618 Fibonacci retracement level. If SHIB breaks above this point, the next major target could be $0.00008517.
A continuation of the uptrend could lead to further gains, with the 1.272 Fibonacci extension at approximately $0.000183312 suggesting a potential 12X increase from the current price.
SHIB Market Sentiment and Exchange Netflow
Meanwhile, Shiba Inu has experienced increased social media activity in recent days. Recently, SHIB ranked among the top meme-based cryptocurrencies in terms of social mentions, recording a 4,110 increase in mentions today. This rise in online discussions reflects a growing interest in the asset.
Meanwhile, CryptoQuant data shows that SHIB’s exchange reserves have dropped to a four-year low of approximately 94.2 trillion tokens. This suggests that more investors are moving their holdings away from exchanges, reducing immediate selling pressure, a precursor of a bullish breakout.
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