Shiba Inu shows potential breakout from descending channel pattern
Analyst identifies three key price targets up to $0.00004349
Critical support holds at $0.00002170 Fibonacci level
Despite recording its third consecutive weekly decline, Shiba Inu shows signs of potential trend reversal as technical analysis reveals a promising breakout pattern. The meme cryptocurrency’s recent price action, while bearish on the surface, may be setting the stage for a significant upward movement according to respected analyst Rose Premium.
The Shiba Inu Breakout Scenario
The current market structure centers around a descending channel that began forming after SHIB touched $0.00003343 in early December. The potential breach of this pattern has caught the attention of technical analysts, who see it as a possible catalyst for renewed upward momentum.
Technical Analysis of $SHIB/USDT Chart:The price is trading at 0.00002230 USDT, with a slight drop of -2.76%.Fibonacci Levels:0.618 Level at 0.00002230: Acts as a potential support level.0.786 Level at 0.00002170: Represents a deeper support zone.0.00003265: Short-term… pic.twitter.com/W28z5pQZnh
— Rose Premium Signals (@VipRoseTr) December 28, 2024
According to Rose Premium’s analysis, this breakout could trigger a series of price targets, with the most ambitious suggesting a nearly 100% appreciation from current levels.
The analysis identifies three distinct price objectives: an initial resistance at $0.00003236, followed by an intermediate target at $0.00003870, and an ambitious long-term goal of $0.00004349. These levels represent significant technical and psychological barriers that, if breached, could confirm the strength of the potential breakout.
While SHIB currently trades at $0.0002173, showing modest 24-hour gains of 1.73%, the more significant story lies in its interaction with key Fibonacci support levels. The token has found stability at the 0.786 extension ($0.00002170) after breaching the 0.618 level ($0.00002230), suggesting that buyers remain active at these critical technical junctures.
This confluence of technical factors – the channel breakout potential, clearly defined resistance levels, and strong Fibonacci support – creates an intriguing setup for SHIB as it attempts to reverse its recent downward trend and potentially challenge previous highs.
