Trading just below a resistance level of $0.0000205, Shiba Inu [SHIB] has shown a bullish trend after breaking out of a descending wedge pattern, as indicated in a previous evaluation.
Recently, there has been an uptick in buying pressure for SHIB. A significant bullish movement is expected upon breaching the prominent resistance level seen over the past five months.
Shiba Inu Price Forecast: Is a 40% Upswing on the Horizon?
In the latter part of February and early March, Shiba Inu experienced a 389% surge in just ten days. However, since then, persistent selling pressure combined with a bearish overall market sentiment pushed the meme coin into a prolonged downtrend.
Currently, the $0.0000155 mark has acted as a support zone since around mid-September. The daily chart’s market structure remains positive, with the On-Balance Volume indicator showing higher lows over the last five weeks.
Although there is a visible increase in buyer activity, a breakout is not deemed imminent yet. It would likely require a notable move in Dogecoin [DOGE] or a significant piece of news related to meme coins to propel SHIB beyond the $0.0000205 threshold.
Potential Retest Likely Due to Strong Liquidity Levels
Analysis by CryptoCrypto revealed a concentration of liquidity in the $0.00002 range, extending up to $0.0000207. This proximity to the current market prices suggests a positive short-term forecast for Shiba Inu.
While a retest of this liquidity cluster appears imminent, it remains uncertain if this will trigger a breakout. Higher buying volumes and a change in market sentiment would be essential catalysts for such a move.
Traders are advised to monitor the market closely for signs of substantial gains similar to those observed earlier this year in February. Should SHIB surpass $0.0000205, the next target at $0.0000295 represents a 40% increase.
Disclaimer: The above analysis reflects the author’s personal opinion and should not be construed as professional financial advice, investment recommendations, or trading guidance.