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HomeNewsShiba Inu (SHIB) on the Rise: What Does the Breakout Signal for...

Shiba Inu (SHIB) on the Rise: What Does the Breakout Signal for Investors?

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  • SHIB teeters on the brink of a major breakout from long-term resistance.
  • RSI and daily trends suggest bullish momentum, but risks remain.

The digital currency landscape is always ripe with anticipation and Shiba Inu (SHIB), the meme coin that has captured the imagination of the crypto community, is no exception.

Currently, SHIB is making headlines as it teeters on the edge of breaking through a significant resistance barrier that has been a defining feature of its trading pattern for nearly 570 days. This long-standing descending resistance trend line has been a tough nut to crack, with three distinct rejections marking its strength and resilience over time.

Another positive development from SHIB also came from the soaring burn rate of its token when anticipation for ETFs increased, as ETHNews had previously announced.

A Closer Look at SHIB Weekly Trends

Delving deeper into the weekly technical analysis, we observe a tantalizing dance of numbers and lines. Despite its spirited attempts, SHIB has yet to secure a weekly closure above this daunting trend line.

Source: TradingView

Adding another layer of complexity, SHIB finds itself ensnared within a long-term horizontal resistance area, a battleground where bulls and bears have been locked in a standoff for nearly a year.

In the midst of this high-stakes financial drama, the Relative Strength Index (RSI) emerges as a beacon of hope for SHIB enthusiasts. Traditionally revered as a reliable momentum indicator, the RSI is currently painting a bullish picture for SHIB.

With its value soaring above 50 and on an upward trajectory, the RSI signals that the bulls might be gaining the upper hand in this epic struggle. To understand more deeply about the development of SHIB, you can watch this YouTube video.

Daily Dynamics: A Glimmer of Bullish Optimism

Transitioning to the daily time frame, the narrative begins to take a more optimistic turn. The price action within this more granular view suggests that SHIB is not only battling it out within long-term confines but is also navigating the twists and turns of a short-term ascending parallel channel.

shib
Source: TradingView

The coin is at a critical juncture, attempting to break free from the clutches of the channel’s mid-point and its short-term resistance.

Supporting this bullish sentiment, the daily RSI stands firmly above 50, its upward momentum echoing the positive vibes emanating from the price action. This confluence of bullish signals has led to a daring prediction: SHIB is on the cusp of a breakout.

The Path Forward: Potential and Pitfalls

Should SHIB muster the strength to shatter its chains of resistance, the sky’s the limit. A successful breakout could catapult its value by nearly 25%, aiming for the lofty heights of the long-term channel’s resistance trend line at $0.0000128. However, in the volatile world of cryptocurrency, fortune’s wheel can turn swiftly.

A failure to breach the short-term channel’s boundaries could spell a 25% plunge, sending SHIB spiraling down to the support line of the long-term channel at $0.0000080.

At the time of writing, the price of SHIB has risen 7.95% in the last 24 hours, reaching a price of $0.00001116. This represents an increase of 17.96% over the past 7 days.

Disclaimer: ETHNews does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. ETHNews is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.
Syofri
Syofri
Syofri is an active forex and crypto trader who has been diligently writing the latest news related to the digital asset sector for the past six years. He enjoys maintaining a balance between investing, playing music, and observing how the world evolves. Business Email: info@ethnews.com Phone: +49 160 92211628
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