An analyst on TradingView has outlined key buy and sell targets for Shiba Inu as it tests a major resistance zone.
Shiba Inu (SHIB) has entered a technical pressure point after a week of moderate volatility. The price action over the past seven days included a mid-week surge that quickly retraced, resulting in a sideways consolidation from May 23 through May 26.
At press time, SHIB is priced at $0.00001469, reflecting a 0.76% gain in the last 24 hours and a 4.32% increase over the past week. However, attention has now shifted from the recent fluctuation to the breakout potential forming around long-standing resistance zones.
Breakout Strategy Identified on Daily Chart
On TradingView, analyst MBM_Crypto outlined a breakout-focused strategy using the SHIB/USDT daily chart. The setup hinges on a key resistance trendline, which has historically acted as a ceiling for upward movement.
Notably, this descending trendline began forming on March 5, 2024, when SHIB hit a high of $0.000045. After falling to $0.00001086 by August 5, the token made another upward attempt in December 2024, peaking above the trendline at $0.00003344 before losing steam.
Most recently, on May 12, SHIB again approached the same trendline, reaching $0.00001734 but failing to breach it. MBM_Crypto’s chart identifies $0.0000185 as a level at which buyers should take positions.
The analysis also outlines three profit-taking targets: $0.000020, $0.0000235, and $0.000028. From its current price, SHIB would need to gain approximately 90.62% to reach the highest of these levels.
Wedge Formation and Trendline Support Underpin Bullish Setup
Meanwhile, another TradingView analyst, Lingrid, presented a wedge pattern and structural support setup that also favors upside potential. According to this analysis, SHIB is consolidating above key support at $0.00001373, near the intersection of an upward trendline and a major structure retest.
Lingrid identifies a buy zone between $0.00001350 and $0.00001373, with a breakout above the wedge acting as a trigger.
This chart setup highlights $0.00001727 as the immediate upside target, aligning with prior intraday highs. However, a sustained move below $0.00001350 would invalidate the bullish outlook, signaling a breakdown from the current consolidation pattern.
Resistance Cluster and Breakout Potential
Complementing the technical analysis, the Global In/Out of the Money chart from IntoTheBlock shows significant holder positioning near the current SHIB price.
Presently, a large concentration of addresses holding SHIB at a loss sits between $0.000015 and $0.000019. This cluster includes around 129.46k addresses managing 538.42 trillion SHIB, with an average entry of $0.000017.
This zone forms a notable resistance level, yet a confirmed breakout above it could force holders to reposition, accelerating price momentum. On the downside, green bubbles on the chart indicate stronger hands sitting at lower levels. These holders, already in profit, may help absorb selling pressure if price declines resume.
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.
