Shiba Inu Price Analysis: SHIB Key Technical Pattern to Catalyze Liftoff to $0.0000125

Last Updated July 23rd 2021
2 Min Read
  • Shiba Inu price gradually rolls toward a potentially massive breakout.
    • An ascending triangle pattern adds credence to the anticipated bullish narrative.
    • The leveling MACD fails to present defined bullish and bearish signals, holding the consolidation.

    Shiba Inu price has slowly but persistently closed the gap toward $0.00001. The uptrend occurred after a massive selloff in June that saw SHIB plummet to areas around $0.000005. Note that before this freefall, Shiba Inu has rallied in light of its listing on Coinbase Pro.

    A comprehensive look at the four-hour chart reveals an immense resistance at $0.0000093. Bulls have made several attempts to break this seller congestion zone, but none have been successful. The price action in the last three explains the formation of an ascending triangle pattern, which could eventually give way to massive gains past $0.00001.

    Shiba Inu spike beyond $0.00001 depends on the ascending triangle

    The four-hour chart brings into the picture an ascending triangle. This pattern is highly bullish and mainly forms in an uptrend, signaling trend continuation. However, the ascending triangle also forms a reversal pattern, such as the one on SHIB’s four-hour chart.

    Two trend lines make the triangle connecting a series of higher lows and relatively equal but sequential peaks. At the beginning of the ascending triangle, the price action is characterized by high volume, but the volume diminishes as the trend lines narrow. This leads to a consolidation period, succeeded by a breakout.

    Shiba Inu price breakout will be validated when the price cracks the horizontal resistance. As the breakout confirms, the volume spikes, adding weight to the bullish outlook. Shiba Inu breakout target could catapult above $0.00001, following a 34% price action. This breakout target is equal to the distance between the highest and lowest points, as shown on SHIB’s chart.

    A recently formed golden cross pattern on the exact chart reveals that bulls have the upper hand. This pattern forms when a short-term moving average crosses above a long-term moving average. For example, on Shiba Inu’s chart, the 50 SMA crossed above the 200 SMA, pointing at the uptrend, remains intact.

    SHIB/USD four-hour chart

     SHIB/USD 4-hour chart 070721

    Looking at the other side of the fence

    The moving average convergence divergence, or MACD, adds credence to the ongoing consolidation. This is a technical indicator that follows the path of a trend and calculates its momentum. Currently, the MACD has no defined bearish or bullish signals. As the tool levels at the mean line (0.00), the sideways trading may hold longer before a breakout comes into play.