CoinMarketCap shows that SHIB price volatility has increased over the past few weeks. The coin was trading at $0.00002126, down 6% in seven days and 0.56% from the previous day.
The decline brought its 24-hour trading volume down to $557.59 million and market cap to $12.49 billion. The volume-to-market cap ratio is 4.44%, indicating a flat market sentiment.
Despite this negative trend, the weekly chart of Shiba Inu is pointing to a comeback. Interestingly, the chart shows bullish patterns such as the ascending triangle and the cup and handle pattern, which generally precede price increases. Do these patterns indicate a lull before the rally?
The first is the ascending triangle, a classic pattern with a horizontal resistance line and rising support. This pattern shows bullish momentum as buyers push the token to higher lows.
If the cryptocurrency breaks this structure, it could rally to $0.000040, which is the 1.272 Fibonacci extension. A longer-term advance could target $0.000047 and the 1.618 Fibonacci extension, paving the way for a major breakout. The cup and handle formation, which predicts bullish momentum, is one of the highlights of the weekly chart.
A “handle” indicates consolidation before an upward breakout, while a “cup” forms a rounded base. SHIB is consolidating in the handle phase, indicating that it is preparing for its next move. SHIB could surge 67% to $0.000056, a 2.0 Fibonacci extension, if a breakout occurs. This condition requires the price to recover $0.000032 to complete the handle pattern.
SHIB stock may fall below the ascending triangle support at $0.000016 as a safety net if the negative sentiment persists. If the price breaks below this area, it may drop to the $0.000013-0.000010 accumulation zone, where buyers may buy and start a comeback.
Moving average convergence and divergence are more complex. The MACD line at 0.000001718 is close to the signal line at 0.000001805, indicating fading bullish momentum.