Shiba Inu (SHIB) Shows 39% Breakout Potential

Shiba Inu (SHIB) is currently exhibiting a falling wedge pattern on its 4-hour chart, which suggests a potential 39% breakout to $0.00001993. This pattern is characterized by two converging downward-sloping trendlines extending from the May 11 peak, indicating weakening bearish momentum and a possible upside breakout.

If SHIB manages to break above the resistance near $0.00001484, analysts project a significant rally from current levels. This upward movement could position SHIB to reach the $0.00001993 mark, according to the analyst's forecast. Technical indicators support this potential reversal, with the Relative Strength Index (RSI) climbing from oversold territory toward the neutral 50 line, currently reading at 44.25. Volume has also declined during the wedge formation, which is typical behavior before a breakout. The 50-period Exponential Moving Average sits just above the current price at $0.00001484, acting as resistance.

On-chain metrics, however, present a more complex picture. The number of SHIB whales—wallets holding at least 1 billion tokens—has decreased to 10,205, down from 10,232 just nine days ago. This gradual decline in large-holder participation may indicate that some whales are reducing their exposure amid market uncertainty. Large addresses play a crucial role in determining SHIB’s price direction through high-volume transactions, and fewer whales could reflect weakening long-term conviction in SHIB’s future.

Network activity metrics also show a decline in active addresses since May 11, dropping from over 5,000 to nearly 3,200. This decrease often signals fading demand or reduced retail participation. However, a sharp spike in exchange inflows over the last 24 hours presents a counterpoint to this bearish sentiment. When combined with other positive indicators, this could suggest an accumulation phase rather than selling pressure.

The $0.00001413 level has historically proven to be a strong demand zone for SHIB, with the cryptocurrency bouncing from this zone in past cycles. This consistent buyer interest at this price point adds weight to a potential rebound. Additionally, SHIB’s stochastic RSI is approaching oversold territory, which typically suggests that a price recovery may be near, especially when paired with solid support zones.

The current market setup represents a tug-of-war between bullish technical signals and some concerning on-chain metrics. Price action currently seems more responsive to the positive technical developments. As long as SHIB maintains support above the $0.00001413 zone, the path of least resistance may continue to favor upward movement. The coming days will determine whether technical indicators can overpower the weakening network fundamentals.

SHIB price movements remain closely watched by traders looking for the next major move in this popular cryptocurrency. The potential for a 39% breakout to $0.00001993, as suggested by the falling wedge pattern, adds to the anticipation and excitement surrounding SHIB’s future price trajectory.