Shiba Inu Eyes 490% Rally to $0.000081 as Falling Wedge and Bullish Divergence Align
thecryptobasic.com 20 August 2024 13:03, UTC Shiba Inu (SHIB) has been consolidating throughout August, and recent technical analysis indicates the cryptocurrency may be primed for a significant upward move.
Market analyst Javon Marks has highlighted a key development involving a Falling Wedge pattern and a confirmed Bullish Divergence, which could signal the onset of a bullish breakout. Marks’ analysis projects that SHIB may be poised for a notable rally, targeting a price of 0.000081.
Shiba Inu Falling Wedge Pattern Signals Imminent Breakout
According to Marks’ chart, Shiba Inu is approaching the converging point of a Falling Wedge pattern. This pattern typically appears following prolonged downtrends and indicates a potential reversal to the upside.
Shiba Inu’s price has been forming lower highs and lower lows within this narrowing structure, suggesting that selling pressure is gradually fading.
As the wedge tightens and approaches its converging point, a breakout becomes increasingly probable, signaling a possible bullish reversal. With the current price at $0.0000138, Shiba Inu needs to surge by over 490% to reach Marks’ target.
Additional Optimism
In addition to the Falling Wedge pattern, Marks points to a confirmed Regular Bullish Divergence between the price and momentum indicators, such as the Relative Strength Index (RSI).
A bullish divergence occurs when the price forms lower lows while the indicator creates higher lows, signaling a weakening bearish momentum. This divergence adds further confidence to the potential for a price reversal, reinforcing the likelihood of a breakout from the wedge.
Key Support and Resistance Levels
An analysis from IntoTheBlock further supports Marks’ bullish outlook by assessing key support and resistance levels for SHIB holders. The In/Out of the Money Around Price (IOMAP) data shows that 60.10% of tracked addresses are currently in profit, while 38.72% are out of the money.
The largest clusters of profitable addresses are between $0.000012 and $0.000013, indicating strong support at these levels. Conversely, resistance may emerge between $0.000014 and $0.000016, where many holders are currently at a loss and may sell at break-even points.
As SHIB approaches these levels, market behavior will likely play a pivotal role in determining its next moves. If the price breaks past resistance, it could open the door to a more sustained rally, aligning with Marks’ projected target of 0.000081.
This analysis by Marks comes after CoinW, a famous crypto exchange, issued a massive target for Shiba Inu, projecting that the meme might skyrocket by over 7,627,665%.
