Ethereum
Bulls on Hold as Shiba Inu Prepares for 200% Rally
As a bullish cycle is underway, Shiba Inu is moving within a descending channel, leading to a deadly crossover event. Will the meme coin manage to stage a reversal rally to break above $0.000030?
Shiba Inu$SHIB, the second-largest cryptocurrency by market cap, has recently been trapped in a correction pattern. Trading at a 63% discount to its 52-week high of $0.00004567, the $SHIB selling spree continues.
However, in the recent turn of events, Shiba Inu finds a breakout opportunity for a new high of 52W. Will the meme coin manage to end the corrective phase to trigger a high-momentum breakout rally?
The triangle that holds the Shiba Inu’s destiny anticipates a bull cycle
In the weekly logarithmic chart, Shiba Inu develops two converging trendlines leading to a symmetrical triangle pattern. Moreover, the fall of SHIB presents itself as a negative cycle to test the support trendline in the manner of a descending channel.
With a long-tailed lower price rejection candle, the meme coin is teasing the start of a new bullish cycle. However, price action traders are waiting for the breakout of the short-term resistance trendline.
According to Fibonacci levels, SHIB holding above the 38.20% level increases the chances of a breakout. However, the long-standing support trendline ahead could provide another opportunity for a bounce.
The MACD and signal lines are approaching a potential bullish crossover slightly above the zero line. Thus, an underlying change in trend momentum is likely to end the correction frenzy.
A closer look at the Daily Falling channel
On the daily chart, the recent reversal of the upper trendline breaks below all crucial EMAs (20, 50, 100, 200). Moreover, the fall leads to a deadly crossover at the 50D and 200D EMAs, while the 100D EMA is ready for a bearish crossover.
Currently, $SHIB is trading at $0.00001687, with an intraday gain of 2.93%.
Shiba Inu Chain Indicators at a Crossroads
According to In the blocka leading on-chain measurement company, nearly half of SHIB HODLers (47%) are not making any profit. However, the underlying community support is visible, with 78% of them holding tokens for over a year.
At the same time, the presence of whales is evident since the large holders dominate 73% of the concentration.
Will $SHIB Break the Bearish Glass?
Bulls anticipate a positive cycle and are ready to challenge the upper trendline in the triangle pattern. However, the breakout of the descending channel in the 1D chart will be the decisive signal before any massive push.
According to Fibonacci levels, the upside is likely to challenge the 52W high at $0.00004567. However, resistances at $0.000029 and $0.000035 could hamper the upside.
Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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