Shiba Inu (SHIB) is stirring anticipation across the crypto market as its price action hints at a possible breakout. With a 6.99% surge over the past 24 hours, the SHIB token trades at $0.00002605, fueled by growing buying interest. Moreover, the token’s market capitalization, currently at $15.35 billion, solidifies its position as the 13th largest cryptocurrency, reflecting its growing prominence.
However, beneath the surface of this bullish momentum lies a contrasting narrative. Over the same period, the cryptocurrency’s trading volume has dipped by 11.93%, settling at $936.54 million. Yet, the volume-to-market cap ratio, now at 6.08%, offers a glimmer of balance in this dynamic. Neither overly speculative nor sluggish, the ratio points to steady participation in the market.
To comprehensively analyze SHIB’s potential, check out our in-depth Shiba Inu Price Prediction for insights into upcoming milestones and market trends.
SHIB Bullish Patterns to Watch Now
One of the standout features on the chart is a classic cup and handle pattern, with the “cup” stretching from a high of $0.00002950 to a low of $0.000010806. The subsequent “handle” is forming near the 0.786 Fibonacci retracement level ($0.00002541), indicating a likely breakout to retest the previous high of $0.00002950 and beyond. Historically, this pattern forecasts an upward price move equal to the depth of the cup, targeting approximately $0.000040880 in this case.
Complementing this is a bullish pennant flag, formed during a consolidation phase with a base around $0.00002541 and a narrowing triangle apex near $0.00002700. The pattern suggests an imminent breakout that could push the SHIB cryptocurrency toward the next Fibonacci levels, with an initial target at the 1.272 extension ($0.00003449) and further potential at the 1.414 extension ($0.00003708).
An Elliott Wave analysis also identifies the current phase as Wave 4, a corrective move that has retraced to the 0.786 Fibonacci level, a zone often associated with reversals. Wave 5, the final impulsive wave, is projected to rally toward $0.00003449 (1.272 extension) and probably extend to $0.00004880 (1.618 extension), representing a gain of approximately 55% from the current price if the momentum sustains.
SHIB Key Resistance and Support Levels
Despite these bullish signals, it is crucial to remain vigilant for potential risks as the token’s immediate resistance level is $0.00002950, which aligns with the previous high and marks the critical barrier for further upside. On the downside, a failure to hold above the key support level at $0.00002229 (0.618 Fibonacci retracement) could invalidate the bullish setup, leading to a decline toward $0.000020100, where additional buying interest may emerge.
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Source: https://www.cryptonewsz.com/shib-ready-to-soar-bullish-patterns-to-watch/