The price movement of Shiba Inu (SHIB) suggests a potential breakout, sparking anticipation in the cryptocurrency market. The SHIB token has risen by 6.99% in the past 24 hours, trading at $0.00002605, thanks to increasing buying interest. Additionally, the token's market cap currently stands at $15.35 billion, solidifying its position as the 13th largest cryptocurrency, reflecting its increasingly prominent status.
However, beneath the surface of this bullish momentum lies a contrasting narrative. During the same period, the trading volume of cryptocurrencies decreased by 11.93%, closing at $936.54 million. However, the ratio of trading volume to market cap currently stands at 6.08%, providing a bit of balance to this dynamic. This ratio is neither overly speculative nor sluggish, indicating stable market participation.
To thoroughly analyze SHIB's potential, please check our in-depth Shiba Inu price prediction to understand the upcoming milestones and market trends.
SHIB's bullish pattern is worth watching
One of the most prominent features on the chart is the classic cup and handle pattern, with the cup extending from a high of $0.00002950 to a low of $0.000010806. The subsequent 'handle' forms near the 0.786 Fibonacci retracement level ($0.00002541), indicating a potential breakout and retest of the previous high of $0.00002950 and above. Historically, this pattern predicts a price increase equal to the depth of the cup, with a target of approximately $0.000040880 in this case.
Complementing this is a bullish pennant formed during the consolidation phase, with a bottom approximately at $0.00002541 and a narrowing triangle vertex approaching $0.00002700. This pattern indicates an impending breakout, potentially pushing the SHIB cryptocurrency towards the next Fibonacci level, with an initial target of 1.272 extension ($0.00003449) and further potential at 1.414 extension ($0.00003708).
Elliott Wave analysis also identifies the current phase as Wave 4, which is a corrective move that has retraced to the 0.786 Fibonacci level, a region typically associated with reversals. Wave 5 is the final impulse wave, expected to bounce back to $0.00003449 (1.272 extension) and potentially extend to $0.00004880 (1.618 extension), which would be about a 55% increase from the current price if momentum continues.
SHIB key resistance and support levels
Despite these bullish signals, caution must be exercised regarding potential risks, as the token's immediate resistance level is at $0.00002950, aligning with previous highs and marking a key hurdle for further upward movement. On the downside, failing to hold above the key support level of $0.00002229 (0.618 Fibonacci retracement level) could invalidate the bullish setup, leading to a drop to $0.000020100, where additional buying interest may arise.
