Shiba Inu Breaks Out With 3.66% 24-Hour Gain Triggers Bullish Outlook

Shiba Inu (SHIB) has recently experienced a bullish breakout from a falling wedge pattern, a classic technical formation often associated with upward reversals. The price rose above key resistance levels and is currently trading at approximately $0.0000137, a 3.66% increase in the last 24 hours [1]. Analysts suggest that this breakout could signal the beginning of a stronger upward trend, with price targets ranging from $0.00001471 to $0.00001600, representing potential gains of 13% from the current level [2].

Technical indicators support this bullish scenario. The Relative Strength Index (RSI) is at 83.57, indicating strong upward momentum and a near overbought condition [1]. On-chain data also shows a 15% price increase following SHIB’s breakout from a symmetrical triangle pattern [3]. Additionally, SHIB has formed a double bottom pattern with support at $0.000010 and resistance at $0.0000159, further reinforcing the likelihood of a bullish continuation [5].

Market strategist Rich X Cult has outlined key levels for traders to monitor. He identifies $0.00001242 as a critical support zone, which he views as an ideal entry point for traders looking to position themselves ahead of a potential rebound. A breakout above the neckline at $0.00001306 could trigger a further rally toward $0.00002600, a move of approximately 100% [1]. However, the analyst also warns that a close below $0.00001242 could lead to a decline toward $0.00001170, signaling a shift in market sentiment [2].

Other analysts are also bullish on SHIB. SHIB Knight highlights the formation of higher lows as a sign of increasing upward pressure and has projected a target of $0.000018 [1]. Meanwhile, analyst Crypto Mullah is tracking a larger falling wedge pattern that has been in place since December 2024. A breakout from this formation could push SHIB back toward its previous high of $0.00003343, representing a 146.5% increase from current levels [1]. Javon Marks has identified a confirmed bullish divergence on a two-day chart, suggesting the price could rise more than 156% from the confirmation point, with a target of $0.000032 [1].

In addition to technical factors, SHIB has seen a significant reduction in supply due to recent burn activity. Over the last 24 hours, 4.7 million tokens were burned, contributing to a 1,985% surge in burn rate [2]. This deflationary mechanism has reinforced long-term bullish sentiment among investors.

The token’s ecosystem has also seen improvements in security, with Shibarium partnering with DegenSafe to address concerns over scams and hacked wallets [2]. These developments, combined with a strong technical outlook, are contributing to growing optimism in the market.

Despite the positive signals, analysts caution that the price remains in an overbought territory, and short-term volatility is likely. Traders are advised to monitor key support and resistance levels and to implement risk management strategies such as stop-loss orders [2]. The sustainability of the bullish move will depend on whether SHIB holds above $0.00001242 and whether broader market conditions remain favorable.

Source:

[1] Shiba Inu Price Targets $0.000026 Amid 4.7M Token Burn (https://coingape.com/markets/shiba-inu-price-targets-0-000026-amid-4-7m-token-burn-and-shibarium-security-boost/)

[2] Shiba Inu (SHIB) Price Analysis: Expert Spots Bullish Breakout Signal (https://timestabloid.com/shiba-inu-shib-price-analysis-expert-spot-bullish-breakout-signal/)

[3] Shiba Inu Exchange Supply Drops Toward New Lows (https://www.mitrade.com/insights/news/live-news/article-3-1044728-20250816)

[5] SHIB Price Eyes Breakout After Double Bottom with Rising (https://www.bitget.com/news/detail/12560604914918)