Shiba Inu Looks To Resume Its Uptrend
Shiba Inu could soon enter a new bull run, but it has two significant resistance barriers to overcome.
Key Takeaways
- Shiba Inu is up more than 15% in the past 16 hours.
- The dog token’s price has climbed to a critical area of resistance.
- If SHIB slices through resistance at $0.000055, it could resume its uptrend.
- Shiba Inu appears to be decoupling from the rest of the market after posting significant gains.
- Although SHIB looks ready for further upside, it has several hurdles to overcome.
Shiba Inu Prepares to Break Out
Shiba Inu appears to have the strength to breach a critical resistance barrier and advance toward new all-time highs. The Dogecoin clone, part of a new breed of so-called “dog tokens,” has risen by more than 15% in the past 16 hours, despite the rest of the market struggling to recover from Wednesday’s flash crash.
The sudden bullish impulse has pushed SHIB beyond the upper trendline of a bull flag that developed on its six-hour chart. This bullish continuation pattern anticipates that Shiba Inu could advance another 200% if buy orders continue to pile up. A decisive six-hour candlestick close above the flag’s upper trendline at $0.000055 could ignite a new bull run toward $0.000175.
Shiba Inu 6-hour price chart.
Transaction history shows that breaking through the $0.000055 resistance level may present some challenges. More than 18,000 have previously purchased over 26 trillion SHIB around this price level, based on IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model.
These token holders may attempt to break even on their long positions as prices rise, which would slow down the uptrend. However, a sustained breach of the supply wall could validate the optimistic outlook presented by the bull flag pattern.
SHIB – in/out of the money around price.
It is worth noting that if Shiba Inu slices through the $0.000055 resistance, it will have to overcome another hurdle at $0.000059 to be able to achieve its upside potential. If it clears both supply barriers, SHIB will have no opposition ahead of a new all-time high at $0.000175.
