Shiba Inu has broken out of a falling wedge pattern. An analyst identifies his ideal entry price, projecting a significant uptick in the near term if the current level holds.
In a post on X, market analyst Rich X Cult projects Shiba Inu to reach $0.00001471–$0.00001600 after breaking out of the falling wedge, a technical formation often associated with bullish reversals. Currently, SHIB trades at $0.00001405, marking a 2.6% gain over the past 24 hours and 14% in the last week.
Breakout Signals Potential Upside for Shiba Inu
The recent breakout comes after SHIB reversed from recent lows around $0.00001120 on August 3, according to the 4-hour chart. The move is supported by an overbought Relative Strength Index (RSI) of 83.57, suggesting strong momentum behind the rally.
Trading volume over the past 24 hours reached approximately $340 million, indicating increased market participation. In addition, amid the upsurge, SHIB’s price has crossed above the 50-period moving average (MA).
Shiba Inu’s Support and Resistance Levels
Technical levels remain critical for SHIB’s near-term direction. The analyst identifies $0.00001242 as the immediate support level. He identified this as an ideal entry point for traders looking to buy pullbacks.
If this level holds, it could act as a springboard for another leg higher. Above the current price, the next resistance zone is between $0.00001471 and $0.00001600, representing a 13% increase from the current price. Clearing this range could signal further upside potential.
Interestingly, SHIB KNIGHT had earlier made a similar call, projecting a 32% rise to $0.000018. He pointed to a higher low formation on the chart, suggesting the recent rebound from a local low may signal building upward pressure.
Meanwhile, Rich X Cult noted that if the price closes below $0.00001242, downside risks increase, with the next target near $0.00001170. A drop to this level could shift sentiment back to neutral or bearish, especially if broader cryptocurrency market conditions weaken.
The analyst also mentioned the suggested trading plan, which involves entering on a pullback to $0.00001242 with a stop-loss placed just below this level. He also noted that with the RSI in overbought territory, short-term volatility is possible.
Other Analysts Predict Long-term Shiba Inu’s Rally
Crypto analyst Crypto Mullah believes Shiba Inu could stage a significant rally if it breaks out of a multi-month falling wedge pattern on the 3-day chart. The token has traded within this wedge since reaching $0.00003343 on Dec. 8, 2024, following a 49% surge in November during a broader market rally.
Attempts to break higher, including a July 21 move to $0.00001597, have failed to hold, keeping SHIB in the pattern. Mullah now projects that a breakout could trigger a move back to the December high, about 146.5% above the current price, potentially paving the way for further gains.
Interestingly, analyst Javon Marks had earlier made a similar projection after noting Shiba Inu confirming a bullish divergence on its two-day chart. He projects a potential climb of over 156% from the divergence confirmation level, targeting $0.000032.
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.
