Shiba Inu (SHIB) has been attracting investors and analysts based on a recent potential breakout pattern. As the meme coin market is currently active, analysts have predicted the movement of SHIB’s price and a possible surge.
Popular analyst, Charting Guy observed that Shiba Inu may be on the precipice of an enormous price increase after a breakout and correction.
Breakout and Backtest Confirmed
Shiba Inu has had a breakout from a downtrend that started in March 2024. It has stimulated a debate on the possibility of price appreciation. In his analysis, Charting Guy, a technical analyst who has been tracking Shiba Inu closely, stated that the breakout happened in late September when the price of SHIB surged by more than 40% in two days to regain the $0.000021 range.
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However, the coin later on had a correction and the price dropped down to $0.00001553. Nevertheless, the analyst points out that the backtest, which is essential for validating a breakout, has been done.
This means that Shiba Inu is in a good spot for another possible surge. The present market situation and the analysis of Shiba Inu’s technical chart suggests that the meme coin might experience an enormous price rally.
Source: Charting Guy
Historical Price Movements Support Analyst’s Prediction
Shiba Inu’s recent surge is not the first time the meme coin has displayed high levels of price volatility. Last month Charting Guy made a similar prediction that SHIB was set for an upward move.
Following this, the price of Shiba Inu coin rose by almost 50% to $0.00002141. Then it faced some resistance and declined slightly. This historical price movement has even added more strength to the current forecast by the analyst.
With the breakout and backtest done, many are already wondering if Shiba Inu will repeat what it did in late September. The analyst’s most recent chart indicates a resistance level at $0.00002266. If SHIB resets above it, it will signal that the token has the potential for further growth.
Market Sentiment, Price Targets and Support Levels
The technical analysis of Shiba Inu also depicts important price levels of interest and potential targets. The first target is at $0.00002266 which is 26% above the present price of SHIB.
If SHIB price breaks through this level, the next level of interest will be $0.0000312. That area has not been observed since mid-2023. This price movement would be a major indication of a possible reversal of the current long-term bearish trend.
However, Shiba Inu has strong support at $0.00001104. This level will help to avoid the pressure from the sell side, as the bulls are anticipated to secure this price level and not allow a major drop.
In the event of high volatility within the market, the support levels provided in the table prevent the SHIB price from overcorrecting. Moreover, other meme coins have been on the rise as well with several tokens either reaching new highs or posting massive gains.
Shiba Inu has been a part of this trend, although with slightly lower returns when compared to some of the other tokens. owever, analysts believe that the breakout pattern followed by the backtest provides a path for the price rally in the next couple of weeks.
As of this writing, Shiba Inu was valued at $0.00001739, up by 34% over the past month. The token is ranked among the top twenty tokens globally, with a market capitalization of $10.25 billion.
