Shiba Inu Price Poised for 120% Surge as Technical Pattern Completes

Shiba Inu (SHIB) is at a pivotal moment as its price action indicates a potential reversal. After months of decline, the cryptocurrency has completed a technical pattern that could drive an upward movement. Experts suggest that a breakout is likely, with the price potentially surging to a new high of $0.00002500.

Over the past few months, Shiba Inu has been forming a descending wedge pattern. This pattern typically signals that the price may soon break its downward trend. A descending wedge is characterized by successively lower lows and higher lows, with the range between the highs and lows decreasing over time. Crypto analysts note that such a pattern can precede a bullish breakout, especially when coupled with rising volume. Currently, the SHIB price appears to be in the process of breaking out of this consolidation period.

A break above the upper trendline of the wedge could lead to an increase in SHIB prices to the range of $0.00002500 to $0.00003000, depending on market conditions. The coin is currently testing support around $0.0000115, and if it remains above this key level, it could result in another bullish action. However, failure to hold above this support area may cause further selling pressure.

In addition to the technical configuration, the Shiba Inu community has been actively working to reduce the circulating supply of SHIB by burning tokens. The burn rate has recently surged by more than 12,000%, with millions of SHIB tokens transferred to inactive wallets. Shibburn data indicates that 13,090,171 SHIB tokens were burned within a day, significantly decreasing the supply. While the short-term impact on the price may be unclear, ongoing token burns could support price growth in the long run. This decrease in supply may lead to scarcity, potentially driving further price increases if demand remains constant or increases.

Despite the positive developments, Shiba Inu has seen a decline in the activity of large holders. On-chain data shows that SHIB inflows by large holders dropped by 97 percent over the last several days. This suggests that whales may be adopting a wait-and-see strategy, waiting for more favorable market conditions before taking major actions. Large holder inflows are a key metric for market sentiment, and a decline in this value may indicate that whales are cautious about the overall market volatility. This caution could be influenced by recent macroeconomic developments affecting market sentiment. However, some analysts believe that Shiba Inu could still benefit from a bullish reversal if broader market conditions improve and if SHIB can break out of its current pattern.

Technical indicators also point to a potential reversal for Shiba Inu. The Relative Strength Index (RSI) is currently at 41.09, suggesting that SHIB is not yet in oversold territory. A rise in the RSI above the 50 mark could signal a shift toward bullish momentum. Additionally, the Moving Average Convergence Divergence (MACD) is showing bullish divergences, indicating that the trend could be changing in favor of buyers. Unless these signs weaken, SHIB may experience a positive trend toward its target resistance levels.