Shiba Inu (SHIB) Looks to Have Broken Out of a Falling Wedge Pattern, Which Could Set the Stage for a Price Increase

Shiba Inu (SHIB) has just caught the attention of analysts, who are predicting a possible breakout based on a technical formation.

Shiba Inu (CRYPTO: SHIB) has caught the attention of analysts, who are predicting a possible breakout based on a technical formation.

According to market analyst Javon Marks, SHIB looks like it has broken out of a Falling Wedge pattern, which could set the stage for a price increase.

If this breakout holds true, SHIB might skyrocket over 422%, possibly reaching a new all-time high of $0.00008841.

However, certain price resistance levels must be cleared before any upward movement can happen.

$SHIB (Shiba Inu) in a larger sense looks to currently broken out of an extremely notable Falling Wedge pattern and prices could be set for a run to new All Time Highs in result!

This run could consist of an over 422% increase to $0.00008841 and higher… pic.twitter.com/sPiwaRugrr

— Javon Marks (@JavonMarks) March 15, 2023

Falling Wedge Pattern: SHIB’s Springboard To New Highs

A Falling Wedge pattern is a technical structure, which is formed during a price decline and consists of a series of lower highs and higher lows.

This pattern is usually considered bullish and signals a potential price reversal after the price breaks above the upper trendline of the wedge.

The current technical analysis of Shiba Inu shows the formation of a Falling Wedge pattern, which has been developing since August 2021.

The wedge formation is nearing completion and, if SHIB breaks out from this pattern, the price could trend higher in the coming months.

This breakout could present a high-risk, high-reward opportunity for investors.

Shiba Inu Hints At Price Reversal After A 284% Spike In SHIB Burns

Key Hurdles: SHIB Resistance Zone

For Shiba Inu to begin a confirmed uptrend, the price must clear critical resistance levels.

According to data from IntoTheBlock, around 757 trillion SHIB tokens were purchased above $0.000016, while 84% of 637 trillion tokens were bought between $0.000016 and $0.000024.

These investors are currently “out of the money,” and breaking through the $0.000018 to $0.000022 range would bring most of them back into profitability.

Market Trends And Indicators

At the time of writing, SHIB’s price was $0.00001531, down 3.92% in the past 24 hours.

Earlier in the day, SHIB had surged to $0.00001593 before the decline. This price fluctuation highlights the volatility in SHIB’s price action.

Despite the recent downturn, SHIB still boasted a market capitalization of $9.02 billion, and the 24-hour trading volume had jumped by 50.70%, reaching $257.67 million.

However, the circulating supply of SHIB stood at 589.25 trillion tokens, which could increase the risk of inflationary pressure.

The MACD and RSI further suggested the downward pressure on SHIB’s price.

The MACD showed a bearish signal, with the MACD line positioned below the signal line and the histogram displaying red bars, indicating stronger selling pressure.

Meanwhile, the RSI stood at 37.67, suggesting that SHIB was not yet in an oversold condition but was approaching a critical juncture.

If the RSI remains above 30 and holds steady, a potential rebound could occur, leading to a more favorable market environment for SHIB.

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