thecryptobasic.com
Shiba Inu (SHIB) shows early signs of a potential breakout after a prolonged downtrend.
A falling wedge pattern has emerged in recent market data, suggesting a possible shift in momentum. This bullish reversal pattern, characterized by converging downward trendlines, indicates that SHIB may soon break above its current resistance levels. Currently, SHIB is trading near the lower end of this wedge, hinting at a potential upside movement as the pattern narrows.
Critical Support and Resistance Levels
The support level for SHIB sits at approximately $0.00001092, where buyers have consistently stepped in to prevent further declines. Above this, the first resistance is located at $0.00002054, marking the initial challenge if SHIB breaks the wedge pattern.
The next key resistance levels are at $0.00002755 and $0.00003505, each presenting significant barriers where SHIB could encounter heavy selling pressure. These resistance levels are important indicators for future price movements, particularly if the token manages to rally.
Shiba Inu is currently eyeing a potential breakout, with a target price set at $0.00002050, signaling a significant upside if the pattern holds. The meme coin would need to rise by 56.25% to reach the target price from its current price of $0.00001312.
Increased Whale Activity
On-chain data indicates a significant rise in large transactions involving SHIB, pointing to renewed interest from institutional investors. According to IntoTheBlock, the number of transactions above $100,000 surged to 45, up from a 7-day low of 34 transactions.
This increase signals growing confidence among large investors, with over 1.97 trillion SHIB changing hands, the highest volume seen since the start of September.
This uptick in whale activity follows a recent dip in SHIB transactions, with just 696.5 billion SHIB transacted on September 1. Notably, the value of these large transactions reached $25.8 million in the past day, reflecting a decline from the $49.37 million recorded on August 30. However, the recent activity hints at a potential price rebound for SHIB.
Renewed Interest in Meme Coins
A recent report by The Crypto Basic highlights that the brief recovery in the broader crypto market has reignited interest in meme coins like Shiba Inu. With a market cap exceeding $7.7 billion, SHIB is now under close watch as traders anticipate a potential bullish breakout.
The report also notes that SHIB is still within a falling wedge pattern, with its price hovering just below key resistance levels. Any upward movement could see SHIB testing the $0.000015 region.