Shiba Inu (SHIB) Flirts With Bullish Reversal as Triangle Breakout Faces Resistance

Key Takeaways

• After a 12% weekly uptick, SHIB broke above a descending triangle, signaling potential bullish momentum.
• Despite the breakout, the Money Flow Index (MFI) remains below 50, suggesting weak buying strength.
• On-chain data shows that SHIB holders are not selling their tokens, reducing short-term sell pressure.
• Without a shift into positive territory, SHIB may struggle to challenge resistance to a level of nearly $0.000016.
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After registering a 12% increase over the past week, Shiba Inu’s (SHIB) price has reclaimed $0.000012. This upward movement has allowed the token to rise slightly above a bearish pattern it has been stuck in since January.

Despite the recent upswing, SHIB’s price remains dicey, with its next trend still unclear. In this analysis, CCN examines key indicators that could impact its next move.

SHIB Recovery Faces Hurdles

Between Jan. 22 and April 8, SHIB’s price fell from $0.000022 to $0.000010, forming a descending triangle.

A descending triangle is a bearish pattern characterized by a horizontal support line and a falling trendline connecting lower highs. The pattern suggests that the market is in a period of consolidation, and buyers are trying to push the price higher.

However, sellers restrict the token from reaching a higher value. In SHIB’s case, however, it appears that buyers have been successful, as the price broke out of the falling trendline.

However, bulls might struggle to keep up with this increase. One reason for this assertion is that the Money Flow Index (MFI) is below the midpoint.

Should this remain the same, SHIB’s price might fail to rise significantly above $0.000012.

Selling Pressure Drops

Despite this technical setup, the Coins’ Holding Time has increased. Also known as the holding time of transacted coins, the metric checks how long a cryptocurrency has been held without being sold or transacted.

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An increase in the metric indicates a rise in holding time, which is bullish. A decrease, on the other hand, indicates rising selling pressure.

Since it is the former for SHIB, the price might not experience a severe correction in the short term. However, that will only happen if holders sustain this trend.

SHIB Price Forecast: Breakout Lacks Strong Backing

Regarding the cryptocurrency’s short-term targets, the daily chart shows that the Awesome Oscillator (AO) reading has remained negative. As seen below, the AO has flashed a green histogram bar.

However, the negative reading indicates that the momentum around the token is bearish. If this trend remains the same, SHIB’s price might fail to test the resistance at $0.000016, near the 0.236 Fibonacci level.

If that were to happen, SHIB’s price might decline again to $0.000010. On the contrary, if the AO reading flips positive, this decline might not happen.

In that case, SHIB’s market value might breach the resistance at $0.000016 and rally toward $0.000019.