Despite facing an 11.88% decline over the past week, Shiba Inu (SHIB) could be gearing up for a bullish breakout, according to technical indicators and market confluences. While the memecoin market remains weak overall, SHIB’s price action is signaling a potential reversal.
Currently, SHIB is trading near the support line of a bullish triangle pattern, a setup that typically precedes upward movement after a consolidation phase. If Shiba Inu successfully breaks through the triangle’s resistance with a confirmed candle close, analysts predict a possible 39% price surge, potentially pushing SHIB to $0.00001765.
Bullish Triangle Could Lead to Explosive Move
The current triangle formation features a descending resistance line and a horizontal support zone, where SHIB is now consolidating. Such patterns often result in upward breakouts, especially when accompanied by bullish market signals.
The key resistance level now stands as the final barrier before SHIB can initiate a breakout rally. However, traders will need to see at least one strong candle close above this resistance for confirmation of the move.
Technical Indicators Support a Bullish Outlook
Several technical indicators are currently favoring SHIB’s upside potential:
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Bollinger Bands (BB): SHIB is trading near the lower BB band, indicating oversold conditions—a common precursor to buying pressure.
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Money Flow Index (MFI): Currently at 35.67 and trending upward, the MFI shows rising liquidity inflow. A move above 50 could trigger stronger bullish momentum.
These signals strengthen the case for a breakout, especially with the lower BB band aligning with the triangle’s support level, creating a confluence of technical support.
Broader Memecoin Market Still Weak, But Recovery Could Aid SHIB
Despite these bullish signals, the overall memecoin market remains sluggish. According to Artemis data, the memecoin sector has dropped by 15.2% over the past week, making it one of the worst-performing segments across the crypto landscape.
This wider decline suggests that liquidity is still flowing out of memecoins, raising questions about whether SHIB’s momentum can overcome sector-wide weakness. However, if the memecoin market begins to recover, capital could return to SHIB, reinforcing its breakout potential.
What’s Next for SHIB?
With several bullish indicators lining up and a strong chart pattern in play, SHIB could be poised for a significant breakout. But traders and investors must remain cautious—confirmation of a breakout is crucial.
Until then, all eyes remain on SHIB’s next move as it sits at the edge of a potentially explosive price rally.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your research before making any investment decisions.
