Shiba Inu (SHIB) is currently facing resistance within a triangle pattern. A successful breakout from this ascending pattern would indicate a bullish trend reversal, potentially leading to a significant upswing and reaching the target resistance area. According to a crypto analysis provider MyCryptoParadise on TradingView, a 20% gain is expected as the resistance nears the breakpoint.
On the other hand, if SHIB fails to break out of the triangle, the price might start to decline. A bearish candle could signal an impending drop. In this case, SHIB could retest the demand area to gather momentum for another breakout attempt or revisit the trendline.
It appears that the second scenario is unfolding, at least for now. SHIB price is currently trading at $0.00002614 according to Coinmarketcap data at the time of publication, marking a nearly 5% decrease over the last day. Furthermore, its market cap has dropped by 4.88% in the last 24 hours, and trading volume has decreased by 39% in the same time frame.
Potential challenges for Shiba Inu
If Shiba Inu (SHIB) reaches the demand area, it must bounce back and resume its upswing to try to break out of the pattern again. Any sign of weakness or consolidation at the demand zone indicates potential challenges in the future.
The price of SHIB has been rising since May 28, with the lower trend line serving as solid support. Recent volatility caused consecutive bullish candles that raised the levels within the ascending triangle resistance. A bullish close above the zone may validate the upswing.
SHIB technical analysis
The SHIB price has reached the upper Gaussian Channel range. If it closes above this range, a bullish trend could emerge. The Gaussian Channel is a technical indicator determining price trends by minimizing lag.
Simultaneously, the RSI is rising, indicating that the price could increase and reach an average upper resistance zone of $0.000031. Increased trader activity could attract more liquidity, although there’s no sign of that at the time of writing.
It’s important to monitor SHIB’s price until the close on May 30, as even the slightest glitch can cause a breakdown. A daily close below or in the resistance zone can spark a bearish trend, leading to a further price decline in this case.
