In the previous month, Shiba Inu [SHIB] experienced a breakthrough from a bullish formation, leading to significant gains in its market performance. The world’s second-largest meme-based cryptocurrency has once again demonstrated a period of consolidation within a bullish pattern in recent days.
If SHIB can replicate its past success, there is a possibility for the coin to reach new highs.
Shiba Inu’s Remarkable Breakout
Previously mentioned, Shiba Inu made a bullish breakout from a descending triangle pattern on September 18. Following this breakout, the meme coin saw a substantial rally, reaching $0.000020. Subsequently, the coin underwent a correction phase.
However, the narrative continued as SHIB entered a similar pattern once more.
Currently, the coin is testing the resistance level of the bullish pattern. A breakout above this level could trigger a significant rally, potentially propelling SHIB to $0.000027 in the near future.
Prospects of Another Breakout for SHIB
In-depth analysis was conducted by CryptoCrypto to gain insights into the state of the meme coin and the likelihood of a bullish breakout. According to CoinMarketCap, SHIB has displayed positive signs on its price charts with both daily and weekly charts showing green indicators.
An encouraging sign was the increase in trading volume by over 19% along with the price surge. An uptick in trading volume during a price upswing suggests the potential for a sustained price increase. Thus, attention was also given to on-chain metrics.
Despite the appearance of a bullish pattern, our analysis revealed a relatively stable balance between selling and buying pressures, as indicated by the closely aligned supply data on exchange and off-exchange graphs. Furthermore, major holders have not actively engaged in SHIB trading activities, noticeable from the consistent supply held by the top wallet addresses.
The fear and greed index for SHIB positioned in the “greed” category at the time of assessment. This level often signals a forthcoming price correction.
Considering these factors, CryptoCrypto examined the technical indicators of SHIB to evaluate the likelihood of a bullish breakout above the current pattern.
Based on our assessment, SHIB was challenging its 20-day Simple Moving Average (SMA) resistance. A breakout above this level would pave the way for surpassing the bullish pattern and targeting $0.000027.
However, the MACD technical indicator exhibited a bearish crossover, potentially impeding Shiba Inu’s immediate price advancement.