The Shiba Inu (SHIB) is generating anticipation in the cryptocurrency market as its price action hints at a possible breakout. With an increase of 6.99% over the past 24 hours, the SHIB token is trading at $0.00002605, supported by growing buying interest. Moreover, the token’s market capitalization, currently at $15.35 billion, solidifies its position as the 13th largest cryptocurrency, reflecting its growing prominence.
However, beneath the surface of this bullish momentum lies a contrary narrative. During the same period, cryptocurrency trading volume fell 11.93% to $936.54 million. However, the volume to market cap ratio, which currently stands at 6.08%, offers a glimpse of balance in these dynamics. This ratio is neither overly speculative nor sluggish, but indicates sustainable participation in the market.
For a comprehensive analysis of SHIB’s potential, check out our detailed Shiba Inu price forecast to gain insight into upcoming milestones and market trends.
Bullish SHIB Patterns to Watch Right Now
One of the standout features of the chart is the classic cup and handle pattern, where the cup extends from a high of $0.00002950 to a low of $0.000010806. The subsequent handle is forming near the 0.786 Fibonacci retracement level ($0.00002541), indicating a likely breakout to retest the previous high at $0.00002950 and above. Historically, this model predicts an upward price move equal to the depth of the cup, with a target in this case of approximately $0.000040880.
Complementing this is a bullish pennant formed during a consolidation phase with a base near $0.00002541 and a tapering triangle top near $0.00002700. The model suggests an imminent breakout that could push the SHIB cryptocurrency to the next Fibonacci levels with an initial target at the 1.272 ($0.00003449) extension level and further extension potential at 1.414 ($0.00003708).
Elliott wave analysis also identifies the current phase as wave 4, a corrective move that has retraced to the .786 Fibonacci level, an area often associated with reversals. Wave 5, the latest impulsive wave, is forecast to rise to $0.00003449 (1.272 extension) and likely extend to $0.00004880 (1.618 extension), representing a gain of about 55% from the current price if the momentum continues.
Key resistance and support levels for SHIB
Despite these bullish signals, it is imperative to remain vigilant against potential risks as the token’s immediate resistance level is $0.00002950, which matches the previous high and marks a critical barrier to further gains. On the downside, failure to hold above the key support level at $0.00002229 (0.618 Fib Retracement) could negate the bullish setup, leading to a decline to $0.000020100 where additional buying interest could emerge.
