Shiba Inu eyes a bullish reversal to July highs, spurred by a possible breakout from a tightening triangle on the daily timeframe.
Top pundit Carl Moon discussed this positive development for Shiba Inu, suggesting that its period of price consolidation would soon taper off. He shared this in his Sunday tweet, aligning with the meme coin’s nearly 2% price increase.
Forming Descending Triangle Raises Reversal Optimism
For context, despite a slim 3.87% growth in the past seven days, Shiba Inu has dropped 40.8% since the start of the year. Most recently, it retraced from a high of $0.0000142 on August 14 to close with a 2% monthly loss at $0.0000121, joining a broader market sideways price development.
Nonetheless, Carl Moon, who is the founder of the Moon Show, told his 1.5 million X followers that Shiba Inu could be building momentum for a bullish price action. He highlighted a forming horizontal triangle on the daily timeframe as a potential catalyst for this bullish reversal.
The descending triangle originated from the high of $0.0000159 in July, a peak price that SHIB attained specifically on the 21st of that month. However, bears stepped in at that level, pushing prices to the bottom of the shared triangle at $0.0000100.
Meanwhile, SHIB bounced from the support to retest the descending resistance trendline with its rally to $0.00001419 on August 14 but was rejected again. Another attempt to break out on August 24’s high of $0.00001351 proved abortive, as the supply stood firm.
Shiba Inu Breakout Now Imminent
Carl Moon’s shared chart indicates that prices are becoming tighter within the triangle, suggesting a breakout is imminent. When Shiba Inu finally breaks free, the pundit suggested that the momentum from the outburst would spark a rally to higher prices.
Specifically, he predicted a rally to retest July’s peak price of $0.0000159, marking a 27% rally from the current market price of $0.00001251. Meanwhile, the accompanying chart suggests a retest of the support at $0.0000100 before a 59% jump from the area.
Nonetheless, this could be only part of a broader bullish development for Shiba Inu, as analysts eye higher prices. For context, market commentator Javon Marks highlighted a confirmed bullish divergence on the 6-day timeframe, which could take prices towards the $0.000081 region.
The Shiba Inu ecosystem team also predicted that a price rally past $0.00008845 is on the cards, assuring enthusiasts that SHIB will surpass its 2021 peak price and current all-time high in the near term. Marketing lead Lucie recently shared this, insisting that price is temporary, but adoption is forever.
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