Shiba Inu (SHIB) Fails to Breakout, But a Huge Rally Is Still Possible
With yesterday’s daily close on the 1-day chart, Shiba Inu (SHIB) failed to break out of its current consolidation pattern. However, it is still in a prime position to break out by the end of April. On the 1-day chart, SHIB price has been forming an ascending triangle since March 10, as NewsBTC reported last week.
Ascending triangles form consolidation patterns, which signal that the previous trend direction will resume when the pattern is confirmed. Shiba Inu prices are currently showing signs that the consolidation phase is about to end, and the upward trend that began in January may continue.
Is Shiba Inu ready for another breakout?
Shiba Inu failed to close above the $0.00001151 resistance line yesterday despite a strong start to the day. In line with Bitcoin’s price pullback, SHIB ran out of steam by the end of the day.
SHIB’s price fell into an ascending triangle pattern once again as a result. A clean breakout requires high trading volume, as NewsBTC discussed. If the breakout occurs on low volume, like it did yesterday, it is almost always a false indication.
SHIB was trying to break out once more at $0.00001153 at the time of writing. Shiba Inu investors should look for a large increase in volume to confirm the move.
If SHIB can close above the $0.00001151 resistance today and turn it into support, the local high from early February at $0.00001591 could be the next plausible price target (+38%). More selling pressure can be predicted in the immediate term at this level.
However, if this price level is likewise breached, Shiba Inu’s upswing will be fully confirmed. Following a two-month consolidation, a climb of more than 55% to the local high of $0.00001787 on August 14, 2022, would be a second target price.
SHIB may benefit from the Altcoin Season
The key push above the resistance line could be delivered by an altcoin season, which some experts believe is right around the horizon. Jan Happel and Yann Allemann, co-founders of Glassnode, write in their most recent newsletter:
“According to the Altcoin Cycle Signal, altcoins are currently vulnerable to bitcoin pullbacks, such as the one we saw today. The tides are turning in favor of Ethereum.”
As a result, the traditional move from Bitcoin to Ethereum to altcoins like Shiba Inu may be on the horizon. According to researcher Scott Melker, Bitcoin Dominance (BTC.D) is at the top of a multi-year range. The initial decrease in BTC.D has already occurred in the last few days, which could signal the start of an altcoin season.
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