Key Takeaways
- Shiba Inu announced plans for a Decentralized Autonomous Organization (DAO).
- The Shiba Inu (SHIB) price moved above two key long-term resistance levels.
- Can SHIB catalyze a short-term breakout and finish the year bullish?
Shiba Inu (SHIB) has increased since Aug. 5. At its local peak on Sept. 27, SHIB has doubled in price, reaching a high of $0.0000216. Even though SHIB has fallen since then, it created a higher low and could be trading in a bullish structure.
Will SHIB resume its ascent for the rest of the year, and what are the targets if it does? Let’s find out!
Shiba Announces DAO
This week, there has been a slew of recent positive news regarding Shiba Inu and its ecosystem. On Oct. 14, Shiba Inu announced a partnership with MASS, aiming to create a new financial layer helped by AI-driven solutions.
The next day, Shibarium reached a new all-time high in Total Value Locked (TVL) , driven primarily by K9 Finance’s liquid staking platform.
However, the biggest news came from Shiba’s marketing lead @LucieShib. She tweeted that Shiba’s DAO and foundation are coming soon.
According to the announcement , the introduction of the Shib Doggy DAO foundation will mark the beginning of Shiba’s next chapter and set the stage for a decentralized and autonomous future. It will manage the treasury to percent misallocations and provide transparency and security.
Holders of SHIB, BONE, TREAT, and LEASH will help govern the ecosystem and make critical decisions.
More specifically, SHIB holders will govern the community, BONE will power the technology, LEASH will handle security and TREAT will fund community projects.
While she did not provide a specific date for the launch, she reiterated that the launch was imminent.
Shiba Inu Bounces
The weekly time frame SHIB chart shows several bullish signs.
Firstly, the SHIB price bounced on Aug. 5, validating the $0.0000110 horizontal area as support and creating a long lower wick (white icon). The ensuing upward movement caused a breakout from a descending resistance trend line and reclaimed the $0.0000145 horizontal area.
In the final week of September, SHIB created a large bullish candlestick, confirming the breakout.
The trend line had existed for 196 days, so the breakout above it signifies the long-term correction is over.
Secondly, technical indicators have turned bullish. This is clear by the Relative Strength Index (RSI), which has moved above 50, and the Moving Average Convergence/Divergence (MACD), which made a bullish cross (black circle). The MACD is also crossing above 0.
If the increase continues, the next resistance will be at $0.0000300, 60% above the price.
Can SHIB Break Out?
The daily Shiba Inu price analysis shows that the SHIB price attempts to break out from the minor resistance at $0.0000195.
Previously, Shiba Inu moved above the middle of an ascending parallel channel that has existed since July. This makes an eventual breakout from the horizontal resistance area more likely.
Similarly to the weekly time frame, the daily RSI is bullish since it is above 50 and moving upwards.
As a result, a breakout from the $0.0000195 area is the most likely outcome. While there is minor resistance at the channel’s resistance trend line at $0.0000225, the SHIB price can increase by 50% and reach the next confluence of resistances at $0.0000285.
On the other hand, breaking down from the channel’s midline will invalidate the bullish outlook, triggering a drop to $0.0000145. Currently, this seems unlikely.
Positive End to the Year
The weekly and daily time frame readings suggest the SHIB price will continue increasing for the rest of the year.
While it is unclear if SHIB will move to a new yearly high, a 50% increase to the confluence of resistances at $0.0000283 is likely. A daily close above the minor resistance at $0.0000195 will confirm the upward movement.
Shiba Inu (SHIB) Price Eyes 75% Surge if Key Resistance Is Broken
