Shiba Inu Could See A 53% Surge If This Resistance Breaks, Analyst Explains

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As a seasoned crypto investor with a knack for spotting trends and patterns, I find the recent analysis of Shiba Inu by analyst Ali Martinez quite intriguing. The bull pennant formation, if broken, could potentially propel SHIB to new heights, targeting $0.000037 – an increase of more than 53% from its current price.

A researcher suggests that Shiba Inu might initiate a fresh surge towards the specified price objective, should it successfully overcome the hurdle at $0.000025, which currently serves as its resistance point.

Shiba Inu Is Currently Trying To Break Past The $0.000025 Resistance

Analyst Ali Martinez has brought up an intriguing trend in Shiba Inu’s current pricing, as detailed in his latest piece on X. Here’s a visual representation of the Technical Analysis (TA) pattern he referenced:

It’s clear from the chart that Shiba Inu has been holding steady within a bullish pennant formation lately. A bullish pennant pattern is made up of three components: an initial strong upward move (or ‘pole’), followed by a triangular consolidation phase, and finally a breakout. Since we’re discussing a bullish scenario here, the ‘pole’ refers to the early, powerful uptrend in the coin’s price.

In simpler terms, when the ‘pennant’ (the area following the pole) forms a channel, an asset often moves back and forth between two lines that are gradually converging. The upper line usually acts as resistance, while the lower one provides support. If the asset breaks either line, it could suggest the trend will continue in that direction. The closer the asset gets to the top of this pattern, the higher the probability of a breakout occurring.

Looking at the graph, it seems clear that Shiba Inu is approaching the convergence point within the bullish flag pattern, suggesting a possible imminent breakthrough might occur.

If this breakout moves upward, the potential uptrend could be as long as the pole. This would push SHIB up to approximately $0.000037. Such a surge represents an increase of over 53% compared to its current meme coin price. Yet, for the rally to take place, Shiba Inu first needs to surpass a significant hurdle: the $0.000025 threshold.

This level is not only approximately at the top of the pennant formation, but it’s also significant due to a substantial demand zone on the blockchain. As Martinez mentioned in another post, approximately 40,000 addresses collectively bought about 54.6 trillion tokens of this asset, with an average price around $0.000025.

Individuals who purchased Shiba Inu coins at approximately this price point might currently find themselves in a situation where they’re experiencing a loss. Consequently, when the SHIB price approaches this level once more, some of these investors may choose to offload their coins, worried that they could slip back into a losing position in the future.

Attempting to surpass this level might face increased obstacles for Shiba Inu, potentially making it harder for them to do so.

SHIB Price

At the time of writing, Shiba Inu is trading around $0.000024, down almost 4% over the last week.

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2024-11-22 10:34