Peter Smith
Shiba Inu (SHIB), one of the most actively traded meme tokens, is flashing strong bullish signals. After months of downward pressure, the asset has finally broken through its descending trendline, sparking speculation about an upcoming parabolic move.
SHIB Approaches a Breakout Phase
A recent chart shared by trader Shib Spain highlights key consolidation patterns and breakout levels that could set the stage for SHIB's next major rally.
Shiba Inu is once again grabbing market attention after a recent chart setup pointed to the possibility of a parabolic move. According to trader, SHIB could be entering a critical bullish phase that might push prices higher in the short term.
The latest 4-hour chart reveals important technical developments that support this bullish outlook. After an extended downtrend marked by a steep descending trendline, SHIB successfully broke above resistance and consolidated briefly before staging a sharp upward move.
Key Technical Developments
- Downtrend Break: A clear descending trendline had previously capped SHIB's price action, but this barrier was decisively broken, indicating weakened selling pressure.
- Accumulation Zone: Before the breakout, SHIB formed a rectangular accumulation zone where buying pressure gradually absorbed selling, creating a solid support base.
- Current Structure: Following the breakout, SHIB entered another smaller consolidation box just above prior resistance, suggesting healthy market behavior with buyers maintaining control.
- Potential Upside: If SHIB holds above the $0.0000125 level, momentum could accelerate toward resistance levels around $0.0000135 – $0.0000145 in the near term.
Several factors appear to be fueling this shift in sentiment. The broader crypto market recovery is creating a risk-on environment that benefits meme tokens like SHIB. Community-driven trading dynamics and whale activity often trigger sharp price swings when volume spikes. Additionally, after months of decline, the breakout from the downtrend reflects a market reset where buyers are regaining confidence.
Peter Smith
