SHIB has broken out of a consolidation phase, nearing the resistance level at 0.00002004.
Technical indicators show bullish momentum, including a positive MACD crossover and above the 50-day EMA.
A successful breakout could drive SHIB toward 0.00002813, while a rejection may see it fall back to 0.00001472.
Shiba Inu is seen to have an outstanding increase in price during the week, making its market movements highly discussed. The cryptocurrency is approaching a vital resistance level, which may define its future course of action.
Price Action and Breakout
In a recent post by SHIB KNIGHT, he addressed his 443K followers in X Space that SHIB is nearing critical resistance with the possibility of recording a new ATH. SHIB has been trading within a defined range for many months, within which 0.00001472 has provided robust support. Recently, the price has broken out of its consolidation phase to climb toward the 0.00002004 resistance zone.
https://twitter.com/army_shiba/status/1839270264338555245
The resistance zone has been tested a couple of times, and attempts to break higher previously did not go through. Historical data from early 2024 shows a sharp drop from 0.00003717, forming the current resistance range from 0.00002004 to 0.00002300.
Source: Trading View
Technical Indicators: EMA, MACD
SHIB is currently above its 50-day EMA. That condition tends to be seen as one in which the market is in an uptrend. Furthermore, the MACD indicator has also provided a bullish crossover as the MACD line crossed above the signal line, an indication that momentum was on the rise. This crossover gets further validation with rising histogram bars that indicate increased buying interest as SHIB approaches resistance.
Resistance and Support Analysis
This was tested repeatedly for several months and already has given a solid base to the buyers; on the other side, for this memorandum, the 0.00002004 resistance level has been regarded as a crucial bar. The successful breakout above this level can drive SHIB into the resistance zone at 0.00002813, whereas the inability to break correctly through this resistance might lead to the pullback at 0.00001472 support level.
Outlook of the Market and Trading Volume
Their moves are closely followed by the market participants, especially now that the price is closing in on the 0.00002004 resistance. A high-volume breakout will indicate further upside momentum, while rejection here sends the price back into local support. Since technical indicators, together with main price levels, point to the same conclusion, the market direction for SHIB depends on the result of the test of resistance. At the time of writing, SHIB is trading at 0.00001901, marking 16.8% in the last 24 hours and lying just below resistance. Its price action in the next few days will be particularly crucial to the coin.
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