Crypto analyst Crypto Lalit underscores the criticality of Shiba Inu (SHIB) breaking a key resistance level. According to his analysis, SHIB has followed a downward trendline since early June, consistently testing but failing to break above this resistance. Currently, SHIB is trading just below this trendline at $0.00001765, showing slight upward movement and hinting at a potential breakout attempt.
Potential For a Breakout
If SHIB breaks above this trendline, it could lead to a significant upward movement. The recommended strategy involves going long on SHIB/USDT with 10x leverage upon a confirmed breakout. This approach leverages common market behavior, where breaking a long-standing resistance often triggers substantial price increases. Despite a 1.75% price increase in the last 24 hours, SHIB has seen a 6.03% decline over the past week, currently priced at $0.00001762.
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IntoTheBlock data reveals a balanced distribution between bulls and bears from September 2020 to May 2024. During the 2021 bull run, there was a notable increase in bullish addresses, indicating significant purchases of Shiba Inu by large addresses. However, post-2021, the chart shows a rise in bearish addresses as the price corrected. From 2022 to early 2023, the market exhibited stability with a balanced distribution between bulls and bears, suggesting consolidation. Recent activity in 2023-2024 indicates a slight increase in bearish addresses due to a downturn in SHIB’s price.
Technical Indicators And Market Signals
Ali Martinez, an on-chain analyst, notes that the TD Sequential indicator recently flashed buy signals for SHIB, alongside Solana and Cardano, on the daily timeframe. This signal emerged after a market shakeout where most altcoins hit new multi-week lows.
Related article: Shiba Inu: Analyst Bullish on Meme Coin’s Future, Portfolio Potential
For SHIB, this resulted in a bottom at $0.00001642, marking a 38% dip from its June 5 high. Technical indicators suggest that patient investors might find this a prime buying opportunity, anticipating a significant rebound.
Overall, Crypto Lalit’s analysis and the data from IntoTheBlock and Ali Martinez highlight the critical resistance level SHIB must break to initiate a potential breakout. Investors are watching closely, as breaking this trendline could lead to substantial upward movement for Shiba Inu.
