Peter Smith
Shiba Inu (SHIB) is showing promising technical signals that could lead to a significant price surge. The meme coin has broken above key resistance levels, with analysts targeting a potential 20% rally if current momentum holds.
Shiba Inu (SHIB) Price Breaks Above Critical Support Zone
Shiba Inu (SHIB) just closed a weekly candle at $0.00001334, sitting comfortably above a major support level that's been holding strong for months. This isn't just random price action – there's real technical structure behind this move.
The setup is pretty straightforward: SHIB is pushing toward the upper Bollinger Band on the weekly chart, which sits around $0.00001554. That's roughly 20% higher than where we are now. What makes this interesting is that the $0.00001200 to $0.00001300 range has been acting as a solid demand zone since last year, with multiple successful bounces off these levels.
Last week's nearly 13% gain came from a clean bounce off the lower part of this range. More importantly, SHIB managed to close above its 20-week moving average for the first time in two months. That's a pretty big deal from a technical standpoint.
SHIB Technical Setup Points to Increased Volatility
The Bollinger Bands are starting to widen slightly, which usually means volatility is coming back after a long stretch of sideways movement. Once SHIB breaks out and gains momentum, it tends to run all the way to the top band – and that's exactly what we might be seeing here.
If SHIB hits that upper band target at $0.00001550, it would put the token near its April highs where it previously struggled. But here's the thing – it's approaching that level from a much stronger position this time. The consolidation has been tighter, and there's less resistance in the middle band area.
SHIB Price Clears Key Resistance Levels
The recent breakout also cleared a bearish trendline that's been in place since May. That removes a significant obstacle that was capping upward moves. For the bullish scenario to play out, we need to see continued momentum with increasing volume and buyers defending this breakout structure.
If that happens, SHIB could be setting up for its cleanest technical run in months. The combination of support holding, moving average reclaim, and trendline break creates a compelling case for further upside. The next few days will be crucial in determining whether this setup delivers on its promise.
Peter Smith
