Shiba Inu Price Analysis: SHIB Prepares For 42% Technical Breakout
- Shina Inu trades at the apex of a symmetrical triangle, ready to explode to $0.000042.
- IntoTheBlock's IOMAP model reveals the absence of significant hurdles that could prevent SHIB from achieving short-term goals.
Shiba Inu bulls are not ready to give up on the mission to hit last week's highs and possibly gain ground above $0.00004. Nonetheless, the meme-based token has remained relatively unchanged over the previous 24 hours, only growing by 1%, according to CoinGecko.
SHIB trades at $0.00002898 at writing while holding firmly to the 12th position in the market, below Terra. The cumulative weekly gains have reduced to a meager 2%, with its trading volume sinking to $2.1 billion in the last 24 hours.
Shiba Inu Price Nears A Symmetrical Triangle Breakout
The four-hour chart shows the formation of a symmetrical triangle pattern. The chart pattern is formed by converging a couple of trendlines that link a series of sequential peaks and troughs. Generally, the trendlines are supposed to cross at an approximately equal slope, as shown in the chart. The formation brings to light a period of consolidation (low volatility) ahead of either a breakout or a breakdown.
Realize that a breakdown occurs from the ascending trendline and identifies the beginning of a downtrend.
On the other hand, a breakout happens at the descending trendline and signifies the start of a bullish trend. Symmetrical patterns tend to have precise price targets for the breakout or breakdown, mainly measured from the highest to the pattern's lowest point. For instance, if the price rises above $0.00003 or the upper trend line, we expect SHIB to swing 42% higher to $0.000042.
SHIB/USD Four-Hour Chart
IntoTheBlock's "In/Out of the Money Around Price" (IOMAP) model reveals no supply barrier will prevent the Dogecoin spinoff from achieving its upside potential. Based on this on-chain metric, there is only one medium area of interest, running from $0.000029 to $0.00003, filled by a high number of investors who had previously purchased SHIB around this price level. Roughly 791 addresses are holding nearly 6,171 billion SHIB.
This area may have the ability to absorb some of the buying pressure seen recently. Holders who have been underwater may try to break even on their positions, slowing down the uptrend. But if Shiba Inu can slice through this hurdle, it would likely climb to $0.000035 before extending the bullish leg to $0.000042.
Shina Inu IOMAP Chart
On the flip side, the IOMAP cohorts show that Shiba Inu sits on top of stable support. Nearly 27.300 addresses bought roughly 21,323 billion between $0.000028 and $0.000029. This crucial area of interest suggests that bears will struggle to push prices down, but the odds favor the bulls, at least for now.