SHIB Technical Analysis: Can Triangle Breakout Lead Shiba Inu Higher?

The SHIB price action narrowing inside a triangle pattern may soon lead to a massive breakout. Should we be entering this breakout opportunity?

Key Technical Points:

• The SHIB prices face intense supply pressure at $0.0000125-$0.00001225 resistance.
• Triangle breakout may end ongoing consolidation in SHIB price.
• The 24-hour trading volume of Shiba Inu is $609 million, indicating a drop of 7.3%.

Past Performance of SHIB

In response to the widespread recovery in the crypto market, the SHIB/USDT pair is rising within an ascending triangle pattern. However, the neckline resistance for the triangle is $0.0000125-$0.00001225 mark, which has reverted any bullish attempts over the past two months. Moreover, the coin chart shows multiple higher price rejection candles at this resistance over the past five days, indicating the buyers are exhausted from the last rally.

Source — Tradingview

SHIB Technical Analysis

Today, the SHIB price is 4.5% up, but the long-wick rejection attached to it suggests weakness in bullish momentum. However, if the altcoin gives daily candle closing below this $0.0000125 resistance, a minor retracement is plausible to the rising support trendline. Despite several price corrections since last month, the daily RSI slope wavering above the neutral line indicates the market participant feels optimistic about the memecoin. The MACD indicator projects a buy signal with the bullish crossover of the fast and slow lines. However, the bullish spread must increase for better confirmation. The 20-and-50-day EMAs on the verge of bullish crossover bolsters the breakout theory. In a nutshell, the SHIB technical analysis indicates a bullish direction rally coming shortly as nearing the ascending triangle pattern breakout.

Upcoming Trend

Under the triangle patterns’ influence, the SHIB price should eventually breach the $0.0000125-$0.00001225 resistance zone. This potential breakout would reflect some early signs of a trend reversal. As per the technical setup, the resulting rally may hit the $0.000016 mark, offering a 35% growth opportunity. Conversely, if the daily candle closes below the support trendline, the bullish thesis will be invalidated and will plunge the altcoin to the $0.00001 mark. Resistance Levels: $0.0000125-$0.00001225 and $0.000014 Support Levels: $0.00001 and $0.0000075

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