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Shiba Inu is gearing up for a breakout as it nears a key resistance level, and here are the possible price targets if the pattern plays out.
At the time of writing, Shiba Inu trades at $0.00000618, up slightly in the past 24 hours. The token has remained almost unchanged over the last seven days and month, clearly highlighting a consolidatory trend. However, that could change imminently, as $SHIB appears poised for a major move.
Key Points
- Data shows a setup that could see Shiba Inu break free from its prolonged consolidation and move higher.
- $SHIB recently bounced from a major support level around $0.0000053, signaling a return of institutional buyers.
- Around its current level, there is resistance at $0.0000064 that has repeatedly impeded further upside.
- A convincing break above $0.0000064, with strong volume, sets $SHIB up for a measured move higher.
- The first point to take profit is the $0.0000072 region, and the second is the $0.0000080 mark.
- However, a decisive close below $0.0000058 invalidates this setup.
Shiba Inu Bounces, but Faces Resistance
Pseudonymous yet popular TradingView analyst “The-Thief” recently shared a master plan, identifying clean entry points, stop-loss, and take-profit areas for a measured Shiba Inu trade ahead of a potential breakout on the daily chart. The analysis cited a setup that could see the meme coin break free from its prolonged consolidation and move higher.
For context, the commentary noted that Shiba Inu ($SHIB) recently bounced from a major support level, signaling a return of institutional buyers. On February 6, $SHIB dipped to the $0.0000053 support area, reflecting a notable wash-out in the broader crypto market.
While it bounced from there almost immediately, bears forced a retest of that support a few days later. On March 8, $SHIB dropped to this support again after a series of daily red candlesticks, but buyers defended the level. The analyst highlighted that such activity supports bullish continuation higher.
Now, $SHIB has bounced 16.6% from the support to its current price. Around its current level, there is resistance at $0.0000064 that has repeatedly impeded further upside. The token first visited this supply zone on March 16 and, after over a month, has remained stuck around this resistance.
Breakout Imminent?
Meanwhile, a breakout could occur soon, as the token has persistently mounted pressure on the current resistance level. “The-Thief” patiently awaits this scenario to play out, as it would shape the subsequent price action.
According to the analysis, a convincing break above $0.0000064 with strong volume sets $SHIB up for a measured move higher. Interestingly, the meme coin just needs to increase by at least 3.5% from the current price to defy this stronghold.
When it does, the market watcher recommends an entry and outlines take-profit areas. A daily candle close above the resistance with strong volume is a good entry point for the move, targeting two key areas.
The first point to take profit is the $0.0000072 region, which culminates in a 16% increase from the current price. Meanwhile, the second take-profit area is $0.0000080, representing a 29% increase from the current market price.
However, a decisive close below $0.0000058 invalidates this setup. This area has been the lower band of the current consolidation range, and breaking below it indicates price weakness, temporarily halting breakout momentum.
Notably, Shiba Inu’s performance in the coming days depends on broader market conditions and on-chain activity. Data shows that exchange inflows continue to grow, with 81.6 billion tokens net flooding into these platforms in the past 24 hours.
Trading volume has also dropped by 5.5% during this period, as market participation remains subdued. For $SHIB to break out, these metrics should largely be in its favor.