In the midst of market turbulence, Shiba Inu [SHIB] has managed to record steady gains in the past week and month. Within the last 24 hours alone, it saw an increase of 2.67%, aligning with the prevailing trends in the broader market.
Despite these recent gains, there remains uncertainty about the future trajectory of the asset. The question looming is whether SHIB will continue its upward trajectory or consolidate within its bullish formation for an extended period.
In this examination, CryptoCrypto delves into the potential scenarios that could unfold.
SHIB Poised for a Significant Breakout
Shiba Inu has been trading within the confines of a symmetrical triangle pattern, characterized by price fluctuations between converging resistance and support levels. This signifies a buildup towards a potentially impactful price movement.
Market participants seem to be accumulating SHIB in anticipation of a breakout that could trigger a rally. The premise is straightforward: accruing more holdings now could lead to increased profits if prices surge.
A break above this consolidation phase could propel SHIB towards $0.00002954, a level where strong selling pressure might emerge, potentially capping further upward movement.
Nevertheless, despite the ongoing accumulation phase, technical indicators hint that the awaited breakout could face delays. A detailed analysis follows below.
Delayed Rally Anticipated for SHIB
Indicators point towards a potential postponement in the rally for Shiba Inu (SHIB), suggesting that an immediate breakout is unlikely. This indicates that SHIB might continue consolidating for several more trading sessions.
One such indicator is the Parabolic SAR, which has positioned dots above SHIB’s price, indicating probable downward pressure that could drive prices lower.
Similarly, the Relative Strength Index (RSI), a gauge of price change velocity and market sentiment, reflects bearish signals.
At present, the RSI exhibits a downward trend, mirroring the price action. If this downward momentum persists, SHIB could experience further declines.
The anticipated target in this scenario is the support level within the symmetrical triangle pattern, where prices might attract renewed buying interest before any substantial uptrend resumes.
Despite prevailing bearish indicators, CryptoCrypto highlights the enduring bullish sentiment underlying the market activities. This implies that while SHIB could witness a slight downtrend, a breakout from the pattern remains a plausible future outcome.
SHIB Poised for Upswing
Shiba Inu (SHIB) seems primed for a breakout, evidenced by robust bullish signals in trading activity.
As per Coinglass data, SHIB’s Open Interest has surged by 15.60%, reaching $53.58 million.
This spike indicates a rise in long positions being initiated or added, hinting at traders’ expectations of a price uptick.
Further bolstering this optimistic outlook is the uptick in short liquidations. In the last 24 hours, short traders forecasting a substantial SHIB decline lost $349.72 thousand as the asset maintained its stability.
With Open Interest climbing and short liquidations surpassing long ones, SHIB inches closer to breaking free from its current consolidation phase, signaling potential upward momentum in the near term.