Shiba Inu (SHIB) witnesses an important pattern breakout, which could signal a sharp price increase in the near term.
Notably, market analyst Javon Marks recently pointed to a falling wedge pattern that SHIB has broken out from. He suggested that a 342% rally may be looming. His analysis indicates that Shiba Inu could rise toward $0.000081 if this breakout leads to sustained upward momentum.
Falling Wedge Breakout
The accompanying chart shows that SHIB had been consolidating within the falling wedge structure for over five months. This pattern began forming in March 2024 after SHIB experienced a correction from the $0.000045 yearly peak.
Amid the retracement from March to August 2024, SHIB’s price steadily declined, forming lower highs and lower lows, typical of a falling wedge formation. The broader crypto market’s drop also bolstered the bearish pressure that Shiba Inu faced.
Interestingly, in August, SHIB finally broke out of this pattern, signaling the potential for a strong upward move. Marks noted that SHIB breaking through this wedge pattern could be a catalyst for a substantial price increase.
According to his analysis, if Shiba Inu continues on its current trajectory, it has the potential to rise to $0.000081, a 342% increase from the current price region. The last time SHIB saw the $0.00008 price territory was during the bull run in October 2021.
Shiba Inu Historical Context
A look at the chart reveals that SHIB has already seen sharp upward movements after breaking similar patterns in the past. Notably, from December 2023 to February 2024, Shiba Inu persistently saw lower lows, forming a similar falling wedge.
However, after it broke out in late February 2024, the dog-themed token experienced a massive 368% spike from $0.0000096 to $0.000045 in less than two weeks. If history repeats, the current breakout could lead to another explosive rally.
Current Market Condition
Meanwhile, SHIB is currently trading around $0.00001792. After breaking out of the recent falling wedge, the price has been recording higher lows, a sign of a strengthening trend.
Data confirms that SHIB’s pivot point is at $0.00001719, which is just below the current price. The pivot point is currently a point of important support for Shiba Inu. If SHIB can hold above this level, it could gain the necessary momentum to test higher resistance points.
The first major resistance is at $0.00002077 (R1). If SHIB breaks through this level, the next target would be $0.00002299 (R2), with a further upside potential of $0.00002657 (R3). Shiba Inu will need strong buying pressure to overcome these levels.
In contrast, key support levels to watch are $0.00001361 (S1), $0.00001139 (S2), and $0.00000781 (S3). If SHIB loses momentum and drops below the pivot point of $0.00001719, these levels will become important support zones to prevent a steep decline.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
