Shiba Inu Nears Breakout as Analysts Spot Bullish Divergence and Triangle Consolidation

Shiba Inu (SHIB) is showing signs of a potential bullish reversal, with key technical indicators suggesting the token could be on the verge of a significant price move. Analysts and market commentators have highlighted the formation of a tightening triangle pattern on the daily chart, which has drawn attention due to its potential to trigger a breakout. According to Carl Moon, founder of the Moon Show, SHIB appears to be consolidating within this triangle, and a successful breakout could propel the price toward $0.0000159, representing a 27% increase from its current level of $0.00001251. The pattern originates from SHIB’s high of $0.0000159 in July, after which the price retraced to the lower bound of the triangle, hitting $0.0000100.

The tightening nature of the triangle implies that the token is nearing a decisive moment. Carl Moon suggested that a breakout from this pattern could lead to a retest of the July peak and potentially extend the bullish momentum further. Additionally, a recent price attempt to break above the triangle’s upper boundary on August 24 failed, indicating that the supply at key resistance levels remains strong. However, the repeated attempts to breach these levels suggest that upward momentum may be building, with buyers showing increased participation.

A separate analysis by Javon Marks, shared on X, identified a bullish divergence on the MACD histogram, a technical indicator that often precedes a reversal in price trends. This divergence, observed on the 6-day timeframe, signals a shift in market sentiment, with buying pressure gradually outweighing selling pressure. Marks projected that this divergence could lead to a 163% price surge, bringing SHIB back into the $0.00003 range. He further noted that this could be the first leg of a larger upward move, with the potential for a 570% rally to $0.000081 if bullish momentum continues to gain strength.

The Shiba Inu team has also expressed optimism about the token’s long-term prospects. Marketing lead Lucie highlighted that SHIB has the potential to surpass its 2021 peak price and current all-time high in the near term, emphasizing that while price is temporary, adoption is the key to long-term success. This perspective aligns with broader sentiment in the market, as analysts and investors begin to view SHIB not just as a speculative asset but as a potential long-term investment.

However, the path to these targets is not without challenges. Current resistance lies near $0.000017, and a successful close above this level could pave the way for further gains toward $0.0000204 and beyond. On the downside, immediate support is found at $0.0000080, with deeper support levels at $0.0000065 and $0.00000534. A breakdown below these levels could trigger renewed bearish pressure and extend the bearish consolidation.

In summary, Shiba Inu is at a critical juncture, with multiple technical indicators suggesting a potential breakout is imminent. While the projected price targets remain speculative and based on current market conditions, the growing consensus among analysts points to increasing bullish sentiment. Investors are advised to monitor key resistance and support levels closely, as a breakout from the triangle could confirm the start of a new bullish phase for SHIB.