Shiba Inu (SHIB) is showing early signs of a potential breakout after a prolonged downtrend.
The falling wedge has arose in recent market data, indicating a possible shift in momentum. This bullish reversal pattern, characterized by converging downward trendlines, suggests that SHIB may soon break above its current resistance levels. SHIB is currently trading near the lower end of this wedge, hinting at a potential move higher as the pattern narrows.
Critical support and resistance levels
The support level for SHIB is around $0.00001092, where buyers have consistently stepped in to prevent further declines. Above this, the first resistance is at $0.00002054, marking the initial challenge if SHIB breaks the wedge pattern.
The next key resistance levels are at $0.00002755 and $0.00003505, each of which represent significant barriers where SHIB could face strong selling pressure. These resistance levels are important indicators of future price action, especially if the token is able to rally.
Shiba Inu is currently looking for a potential breakout, with a price target set at $0.00002050, signaling a significant upside if the pattern holds. The meme coin would need to rise 56.25% to reach the price target from the current price of $0.00001312.
Increased whale activity
On-chain data shows a significant increase in large transactions involving SHIB, indicating renewed interest from institutional investors. According to IntoTheBlock, the number of transactions over $100,000 has risen to 45, up from a 7-day low of 34 transactions.
The rise reflects growing confidence among major investors, with more than SHIB 1.97 trillion changing hands, the highest volume since early September.
This surge in whale activity follows a recent decline in SHIB transactions, with only 696.5 billion SHIB transactions occurring on September 1. Notably, the value of these large transactions reached $25.8 million in the last day, down from $49.37 million recorded on August 30. However, recent activity hints at a potential uptick in SHIB prices.
Renewed Interest in Meme Coins
A recent report from The Crypto Basic highlights that the short-term recovery in the broader crypto market has revived interest in meme coins like Shiba Inu. With a market cap of over $7.7 billion, SHIB is now under close scrutiny as traders await a potential bullish breakout.
The report also notes that SHIB is still within a descending wedge, with its price hovering just below key resistance levels. Any upward move could see SHIB test the $0.000015 area.
