CryptocurrencyPrice Analysis

Shiba Inu (SHIB) Presents Buy Opportunity before a Breakout

Briefly –

  • SHIB price forms a vital bullish reversal pattern.
  • The meme coin has consolidated in a constricted range, fueling breakouts.
  • The projected target is around the ATH.

The last ten days have seen Shiba Inu consolidating, developing a support area around 88.6% FIB retracement of $0.00003200. Meanwhile, the meme crypto is likely preparing for a massive price hike. Nevertheless, the surge can be high if the overall market sentiment supports SHIB’s upward journey.

SHIB Prepares a Massive Breakout That Might Translate to a 90% Increase

SHIB’s price has remained stagnant for some time, frustrating most of its holders. The RSI on the daily price chart has barely fluctuated from the last oversold zone in a bullish market (40).

Similarly, the Composite Index (CI) has stood neutral since 5 December. This consolidation might form a base for a significant price upswing.

The Shakeout formation has been among the most attractive reversal patterns in Point & Figure Analysis. Unfortunately, it does not appear often, and it remains effective if crypto is in a massive uptrend.

The Bullish Fake-out builds after a long 0s column declines under multiple bottoms by about two and not over three 0s. The theoretical pattern for SHIB price is a buy-stop at $0.00004000 (3-box reversal), stop-loss at a five-box, and a profit target near $0.00007750.

SHIB’s Day Ahead

SHIB has to avoid a decline under $0.0000334 to eye the first critical resistance at $0.0000349. Broader market support is essential for the DOGE-competitor to overcome Wednesday’s peak of $0.00003439.

The first crucial resistance at $0.000035 would prevent upswings without extended rallies. Meanwhile, a breakout will see SHIB testing the resistance around 62% Fibonacci of $0.0000370. The second critical resistance locates at $0.0000359.

A decline under the pivot of $0.0000334 would expose the first massive support at $0.0000324. The 2nd support floor sits near $0.0000309. Bears require an extended fall towards the 62% Fibonacci of $0.000037 for a short-term dominance.

Technical Indicators

  • First support – $0.0000324
  • Pivot – $0.0000334
  • First resistance – $0.0000349
  • 6% Fibonacci retracement – $0.00006987
  • 2% Fibonacci retracement – $0.00005680
  • 62% Fibonacci retracement – $0.00003700

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