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After trading within a falling wedge pattern, Shiba Inu (SHIB) price rallied to $00008469, reaching near key resistance level at $0.00008517.
Traders watch for a bullish move after the coin tests and surpasses a key resistance zone resistance near the $0.00001280 to $0.00001300 range.
However, failure to hold support levels may lead to further declines.
SHIB’s Falling Wedge Pattern and Key Resistance Levels
Prior to the existing levels, Shiba Inu’s price movement had formed a falling wedge, a technical pattern often associated with bullish reversals.
It was anticipated by analysts that a breakout above the abovementioned resistance zone could confirm an upward trend.
The 50-day moving average acted as strong resistance within this pattern. Hence a close above this level, may indicate bullish momentum.
However, the 200-day exponential moving average (200 EMA) remains another key barrier that SHIB must surpass.
The bullish wedge setup could be invalidated if the price falls below this level. A breakdown may lead to additional losses, pushing SHIB lower.
Cup-and-Handle Pattern Suggests a Potential Rally
Shiba Inu had also formed a cup-and-handle pattern, a bullish continuation setup.
Analysts suggest this pattern could support a strong breakout, with SHIB currently in a favorable buying zone.
The next move could be significant if the price holds above key support.
A crucial resistance level was at $0.00003117, aligning with the 0.618 Fibonacci retracement level.
As SHIB breaks above this point, further gains could follow. The next major resistance is at $0.00008517, a potential target for bullish traders.
Market analysts have projected a 12X increase for SHIB if momentum continues.
The Fibonacci 1.272 extension suggests a long-term target of $0.000183312.
However, this rally depends on SHIB overcoming multiple resistance points.
Shiba Inu Market Sentiment and Exchange Netflow
Shiba Inu has seen a rise in social media mentions, reflecting increased interest from traders.
The cryptocurrency recorded 4,110 social media mentions, placing it among the top meme-based assets.
Growing discussions suggest a bullish sentiment may be building.
Data from CryptoQuant suggest that SHIB’s exchange reserves have dropped to a four-year low.
The current reserves are approximately 94.2 trillion tokens, indicating that more investors are moving holdings off exchanges.
Lower exchange reserves often reduce selling pressure, which could support a price breakout.
If the trend continues, SHIB could gain further traction in the market.
Combining technical patterns, decreasing exchange reserves, and rising social activity suggests potential upside movement.
However, SHIB must break key resistance levels to confirm a bullish trend.