Bullish Pattern is Forming, SHIB’s Breakout Imminent?

After 80% correction since reaching its ATH, positive news about Shiba is popping and might cause a trend reversal. However, the SHIB price is facing challenges from a technical standpoint on its way up.

The Daily Chart

Technical Analysis by Grizzly

On the daily timeframe, Shiba Inu’s SHIB is trading inside a falling wedge, which is a textbook bullish reversal pattern. The wedge was tested its upper boundary several times over the past month.

The price is currently struggling with the EMA50 line (marked by white), which is the first barrier on its way towards the top of the wedge.

The MACD line also crosses above the signal line on behalf of the MACD indicator, which is also a bullish signal.

If the price can break out above the falling wedge and cross beyond the static resistance at $0.00003, we can anticipate a retest of the current all-time high. On the other hand, the first major support is located at $0.00002 (strong daily horizontal support)

The 4-Hour Chart

On the 4-hour timeframe, after a fake breakout (fakeout) and more than two million dollars in liquidations over the last 24 hours, the SHIB price is now amid its short-term static support at $0.000023. The RSI-14 has also experienced a fake breakout and moves sharply towards the bearish area (below baseline).

If the bulls cannot defend the static support (marked by green), SHIB is expected to drop to support around $0.00002, which is also seen on the daily chart.