Shiba Inu (SHIB) continued its strength on Friday after breaking out of a symmetrical triangle pattern on Thursday. The breakout indicated bullish momentum, which was further strengthened by the increase in new daily trading volume, suggesting that a rebound could be in the coming days.
Shiba Inu will rise after breaking out of the symmetrical triangle pattern
Shiba Inu's price was training inside a symmetrical triangle pattern and broke out of it on Thursday. The pattern consists of multiple higher highs and lower lows connected by two converging trendlines from mid-July to mid-September; a breakout of the pattern favors the bulls. As of Friday, it continues to trade above $0.000014.
If the upper trendline of the symmetrical triangle holds support around $0.000013, SHIB could rally by 15% to retest the August 24 high of $0.000016.
The Moving Average Convergence Divergence (MACD) indicator further supports the rise of SHIB, showing a bullish crossover on the daily chart. The MACD line (blue line) moved above the signal line (yellow line), giving a buy signal. It shows that the green histogram bars are rising above the zero line, also indicating that the Shiba Inu price may have upward momentum.
Moreover, the relative strength index (RSI) is above its neutral level of 50, indicating strong bullish momentum.
If the bulls are aggressive and the overall cryptocurrency market outlook is positive, Shiba Inu could close above the weekly resistance at $0.000016. It could extend its gains by another 20% to retest its July 16 high of $0.000020.
SHIB/USDT Daily Chart
IntoTheBlock’s Inflow/Outflow Price (IOMAP) further supports the bullish outlook. Nearly 10,580 addresses have accumulated 44.45 trillion SHIB tokens at an average price of $0.000014. These addresses purchased the dog-based meme token at $0.000014, which makes it a critical support area.
Interestingly, from a technical analysis perspective, the $0.000014 level coincides with the IOMAP findings, making this area a key reversal level to watch.
SHIB IOMAP Chart
Daily new transaction volume is consistent with the bullish outlook, according to Shibarium Scan data. New transactions increased from 3,090 on Monday to 11,357 on Thursday, the highest level in a month. The surge in trading volume indicates that investor interest and activity in Shiba Inu blockchain usage is rising, which strengthens the bullish outlook for the dog-based meme token.
SHIB New Trading Chart
Although technical analysis and on-chain indicators suggest a bullish outlook, the bullish thesis would be invalidated if Shiba Inu’s daily chart breaks below the lower trendline and closes below $0.000012. In this case, SHIB’s price would extend its 12% decline and retest its September 6 low of $0.000010.
