Shiba Inu has recently signalled a potential breakout after re-entering a crucial accumulation zone, hinting at a shift from a long consolidation phase. Crypto analyst Wyckoff Insider flagged the move in a post on X, suggesting it may be a favourable time for a long entry based on the price action. Despite this bullish outlook, Shiba Inu is currently trading at $0.00001217, down by 1.05% in the last 24 hours, with an 8.21% loss over the past week.
SHIB’s Daily Candle Confirms Entry into the Volume Zone
Wyckoff Insider pointed out that a recent daily candle closed within a high-volume profile zone. This technical pattern signals that SHIB has re-entered a value area, a price level where significant trading activity has occurred in the past. Such price movements are often interpreted as bullish, especially when supported by long-term accumulation, as buyers may be stepping in to absorb any selling pressure.
This price action suggests that there is renewed interest from buyers after a lengthy consolidation period. As part of the analysis, the recommended strategy involves entering the market with a stop-loss just below the Last Point of Support, which serves as the final low before a potential upward trend.
Accumulation Zone Offers Strong Support for SHIB
On the chart, Shiba Inu has repeatedly tested a support zone between $0.000009788 and $0.000011726. Historically, this area has served as a base for accumulation, where buyers have absorbed selling pressure. Additionally, long wicks beneath this zone show that previous attempts to break below it failed, suggesting strong demand at these lower price levels.
The Last Point of Support rests between $0.000011726 and $0.000011841. Wyckoff Insider recommends placing a stop-loss just below this level to minimize potential downside risk if the support structure breaks down.
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Shiba Inu’s Bullish Targets: $0.000022 and $0.000039
If Shiba Inu manages to maintain its position above the support zone and continues to rise, the first target for SHIB is $0.000022107. This level aligns with previous resistance from late 2024, where SHIB faced significant selling pressure. The second target is $0.000039005, representing the upper boundary of a larger supply zone formed during SHIB’s peak rally.
Both of these price levels are crucial because they mark points where SHIB encountered selling pressure in the past. Traders are closely watching to see if SHIB can break through these barriers and sustain higher prices in the coming weeks.
Analyst Predicts a 70% Rally for Shiba Inu
Despite recent losses, analysts remain optimistic about SHIB’s potential. Joe Swanson, another analyst, pointed out the development of a cup-and-handle pattern on SHIB’s daily chart. The pattern formed after SHIB rebounded from a low of $0.00001002 in June to a high of $0.00001597 in July.
Swanson believes the current pullback represents the “handle” portion of the pattern, which typically precedes a breakout. He predicts that if SHIB can clear the pattern’s neckline at $0.00001715, the token could rally by as much as 70%, with a potential price target of $0.00002150.
While Shiba Inu has faced significant challenges, such as slipping out of the top 20 cryptocurrencies and struggling with internal conflicts and a lack of institutional support, the SHIB community remains hopeful. The coin remains heavily retail-driven, burdened by its enormous supply of 589 trillion tokens, which contributes to price volatility.
Despite these obstacles, members of the Shiba Inu team continue to encourage long-term holders. Figures like Lucie, SHIB’s marketing lead, have remained optimistic, hinting at ambitious goals such as reaching $0.01 and suggesting that SHIB could rise from its current market struggles.
Final Thoughts
Shiba Inu’s recent movement within the key accumulation zone signals a potential bullish breakout. If the price holds above the support levels and reaches the targets identified by analysts, SHIB could see substantial gains. However, ongoing challenges such as its massive supply and retail-driven nature remain significant hurdles.
