Shiba Inu (SHIB) has surged 4% in the past 12 hours, forming a descending triangle pattern. Will it break above $0.000017 or retest key support levels?
With a price increase of over 1% in the last 24 hours, Shiba Inu is edging closer to the psychological $0.000015 level, continuing its consolidation over recent days. This short-term recovery hints at a potential breakout rally, targeting the $0.000017 resistance zone.
Shiba Inu Targets Triangle Breakout
On the 4-hour chart, Shiba Inu is forming a descending triangle pattern, with a base support level at $0.00001393. The lower-high formation at $0.00001605 on May 23, following the peak at $0.00001764 on May 12, creates a descending resistance trendline.
Currently, Shiba Inu appears to be rebounding from the lower support, recording a price surge of nearly 4% over the past 12 hours. As SHIB trends higher, price action analysis points to a potential challenge of the overhead resistance trendline.
Supporting the bullish outlook, the MACD and signal lines have recently completed a positive crossover. As both lines trend upward toward the centerline, the bullish divergence in the MACD supports the case for continued upward movement.
Additionally, the RSI has risen above the midpoint, indicating increasing bullish momentum. The 50% Fibonacci retracement level at $0.00001551 serves as the immediate resistance in the event of a breakout.
In a bullish scenario, a continuation could push SHIB toward the $0.00001708 peak, aligning with the 100% Fibonacci level. Conversely, failure to break above the resistance trendline may result in a retest of the $0.00001393 support level.
If a breakdown occurs, the next immediate support lies at the May 6 low of $0.00001230.
SHIB Derivatives Signal Upside Potential
Despite prolonged consolidation within the triangle pattern, a recent surge in bullish sentiment in the derivatives market signals growing anticipation of a breakout rally. Open interest in Shiba Inu has increased by 2.81%, reaching $230 million, reflecting rising trader participation.
Furthermore, the funding rate has risen to 0.0098% from previously negative levels, indicating a notable increase in bullish intent. However, the long-to-short ratio over the past 24 hours shows a slight bearish dominance, currently standing at 0.9577.
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