Shiba Inu Price on the Edge of a Triangle Breakout—Here’s the Target

thecryptobasic.com 2 h

Analytics

Shiba Inu accumulation days are nearing their end if the current momentum sustains and it breaks out of a descending triangle.

Notably, this triangle has suppressed Shiba Inu ($SHIB) since mid-February, with its price shuffling between the upper resistance and lower support. As this consolidation appears to be nearing its end, the token now targets much higher prices from here.

Key Points

Shiba Inu is rounding out its accumulation structure near the apex of a descending triangle on the 4-hour chart.
After earlier attempts failed, $SHIB is attempting to break out again, this time with support from the 100-period moving average.
Shiba Inu would have to close decisively above the descending resistance trendline to confirm a breakout, triggering a high-risk-to-reward long setup.
The target for this rally is a retest of the January high of $0.00001009, representing a 61% increase from the current market price.

Shiba Inu Breakout Looms

Market watcher Leeron Shim noted that Shiba Inu is rounding out its accumulation structure near the apex of a descending triangle on the 4-hour chart. The meme coin entered this triangle on February 15, following a lower high move to $0.00000725.

The upper resistance trendline has since slanted downwards, ending all bullish price action from Shiba Inu. Notably, an attempt to break higher on March 16 stopped at the triangle’s neckline near $0.00000644, forcing the token to revisit lower prices.

Now, $SHIB is attempting to break out again, this time with support from the 100-period moving average. Shim feels this time is different because of the 100 MA support, as well as the token’s price stability over the past week. According to him, this signals that selling pressure is getting weaker, paving the way for a breakout.

What Needs to Happen and Breakout Target

The analyst further identified what needs to happen for a sustained breakout this time. Specifically, Shiba Inu would have to close decisively above the descending resistance trendline to confirm a breakout. This move would trigger a high-risk-to-reward long setup, targeting much higher prices.

An accompanying chart shows that the target for this rally is a retest of the January high of $0.00001009, representing a 61% increase from the current market price. Notably, this would mark a reclaim of the psychological $0.000010 price level, a move that several analysts believe would shift market sentiment in Shiba Inu’s favor.

Shiba Inu Descending Triangle Breakout/Leeron Shim

Capital Influx Crucial for Shiba Inu Rally

Nonetheless, Shim highlighted that capital inflows are a crucial catalyst for this rally, as they would neutralize the final technical barrier. As more liquidity enters the fray, Shiba Inu gains strength, paving the way for a significant price surge.

Meanwhile, the Coinglass Shiba Inu spot flows indicate that liquidity might be slowly returning to Shiba Inu. In the past 24 hours, outflows from exchanges have trounced inflows, suggesting that holders are accumulating rather than distributing.

Inflows stand at $6.04 million, while outflows have reached $6.87 million. The difference is $822,530, representing 131.9 billion $SHIB at the current market price of $0.000006236, withdrawn from exchanges in the past 24 hours.

Further analysis shows that most of these withdrawals came from Binance, which had a net outflow of $719,340 in the past 24 hours. OKX and Bitstamp also had significant outflows of $319,050 and $152,730 worth of $SHIB tokens, respectively.