An analyst explained how Shiba Inu could initiate a new rally to this price target if it breaks through the resistance level of $0.000025.
Shiba Inu is currently attempting to break through the resistance level of $0.000025.
In a new post on X, analyst Ali Martinez discussed a pattern that has recently formed in the SHIB price. Below is the chart shared by the analyst that describes the technical analysis (TA) pattern in question.
As shown in the figure, Shiba Inu has recently been consolidating within a bullish triangle flag. A triangle flag is a pattern composed of three parts: the peak, the triangular consolidation channel, and the subsequent breakout. The 'peak' consists of the initial sharp upward trend or downward trend of the token price. In the context of the current topic, the bullish triangle flag is relevant, so the pole corresponds to the previous trend.
The consolidation channel after the peak (essentially the area of the 'triangle flag') causes the asset to move back and forth between two converging trend lines. The upper line of the channel typically provides resistance, while the lower line offers support. Breaking through either of these lines could mean that the trend continues in that direction. The closer the asset gets to the peak of the pattern, the more likely a breakout will occur.
It is evident from the chart that Shiba Inu has recently been approaching the convergence point of this bullish flag, indicating that a breakout may occur soon.
If this breakout occurs upwards, the resulting upward trend could persist with a length similar to the peak. If so, SHIB will rise to the $0.000037 mark. Such a rally would mean a price increase of over 53% from the current price of the meme coin. However, Shiba Inu must clear a major obstacle for this to happen: the level of $0.000025.
This level not only roughly coincides with the upper line of the triangle flag but also has a major on-chain demand area. As Martinez pointed out in another post on X, about 40,000 addresses purchased a total of 546 trillion tokens at an average price of around $0.000025.
Investors buying tokens around this level are now naturally at a loss. Therefore, when the SHIB price retests this level, some of these holders may decide to sell, fearing that their holdings may fall into loss again in the future.
This potential sell-off could increase the resistance Shiba Inu faces when attempting to break through this mark.
SHIB Price
At the time of writing, Shiba Inu is trading at approximately $0.000024, down nearly 4% from last week.
