Shiba Inu (SHIB) Gears Up for First Major Breakout Since January’s Brief Rally

Key Takeaways

• Despite a 40% YTD correction, SHIB has consolidated around $0.000013, with signs of buying pressure building up.
• IntoTheBlock’s IOMAP data shows over 18 trillion tokens accumulated in this range, reinforcing strong support.
• A highly bullish move could break the 0.786 Fibonacci level, pushing SHIB’s price to $0.000019.
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Up a slight 1.14% on the daily, Shiba Inu (SHIB) price could be on the brink of a rally. If confirmed, this would be the first major SHIB price increase since the memecoin hit $0.000024 twice in January.

As of this writing, the token trades at $0.000013 following a 40% year-to-date (YTD) correction. But after weeks of consolidation, buying pressure seems to be lining up behind the cryptocurrency.

While obstacles remain, most indicators suggest that SHIB’s stagnation phase may end.

SHIB Takes Support Over Resistance

First, CCN examines the In/Out of Money Around Price (IOMAP) to spot potential support or resistance. With the IOMAP, one can clearly see the number of addresses and volume of tokens in unrealized profits and losses.

When a larger cluster of tokens is in profits, it indicates support. On the other hand, a higher volume of losses represents resistance.

According to IntoTheBlock, SHIB has major support between $0.000012 and $0.000013. The chart shows that 21,150 addresses hold over 18 trillion tokens in profit, accumulating around $0.000012.

Similarly, at an average purchase price of $0.000013, 17,000 addresses collectively hold nearly 18 trillion tokens, reinforcing the strong support level at these levels.

Since the volume at these levels is higher than those between $0.000014 and $0.000015, SHIB’s price will likely trade higher soon.

Bearish Days Left Behind

From a technical perspective, it also seems to be a similar situation. According to the daily chart, SHIB’s price correction from January highs helped form a falling wedge.

A falling wedge is a bullish reversal pattern formed by two converging downward trend lines. In this pattern, the upper trendline represents lower highs while the other — lower lows.

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Furthermore, this pattern typically indicates. A potential breakout to the upside once buyers regain control. As of this writing, SHIB’s price has broken above the upper trendline, indicating that buyers are slowly gaining dominance.

The cryptocurrency’s value might climb further if sustained, especially with the rising Money Flow Index (MFI) reading. The MFI measures buying and selling pressure.

When it declines, it indicates selling pressure. However, this recent increase will likely increase SHIB’s price, provided the trend remains unchanged.

SHIB Price Analysis: No More Decline?

Regarding its potential targets, SHIB’s price seems to be flirting with the 20-day Exponential Moving Average (EMA). Typically, the trend is bearish when the price is below the EMA.

However, since the token has slightly risen above it, it could validate an extended upswing. In addition, the Awesome Oscillator (AO) reading remains negative, but it has green histogram bars.

If sustained, this indicates a potential transition from a bearish momentum to a bullish one. Should this trend improve, SHIB could follow the signs shown by the IOMAP and hit $0.000016.

In a highly bullish market condition, the price might break the 0.786 Fibonacci level and climb to $0.000019.

Alternatively, if the token fails to test $0.000016 amid fading buying momentum, this prediction might not happen. In that scenario, SHIB’s price might decline to $0.000011.