Shiba Inu (SHIB), one of the most popular memecoins, may be on the verge of a strong rally. According to analyst Ali Martinez, SHIB’s price could rise by more than 53% if the coin manages to break the $0.000025 resistance. This level currently acts as a major obstacle to further growth.
Bull pennant pattern indicates possible strong upside
Martinez points out in his technical analysis a bull pennant pattern currently emerging in Shiba Inu price action. This pattern consists of three components: a pole, a period of consolidation within a triangular channel, and a breakout that is generally in line with the direction of the original trend. For Shiba Inu, this pattern is bullish, meaning that a breakout to the upside could herald another rise.
If the breakout is successful, the price could rise to $0.000037, representing a 53% increase from current levels. According to Martinez, the key to this scenario is breaking the $0.000025 resistance, a level that coincides with a key demand zone on the blockchain.
On-chain data and resistance level
The analyst highlights that approximately 40,000 addresses have collectively purchased 54.6 trillion SHIB tokens at an average price of $0.000025. This group of investors is currently holding their tokens at a loss, which could lead to increased selling pressure if the price reaches this level again. This explains why the $0.000025 zone is a crucial point for Shiba Inu to start a new rally.
Current market position of Shiba Inu
Currently, Shiba Inu is trading around $0.000024, down almost 4% in the past week. Despite this dip, the outlook remains positive if the memecoin manages to break through the resistance and activate the bull pennant pattern.
The coming days are crucial for SHIB. A break above $0.000025 could not only provide significant upside but also strengthen investor confidence in the memecoin. However, investors are advised to remain cautious given the potential selling pressure at this key level.
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Source: https://newsbit.nl/shiba-inu-kan-53-stijgen-bij-doorbraak-van-cruciale-weerstand/
