Shiba Inu Price Poised for Breakout After 20-Day Consolidation

Shiba Inu Price Poised for Breakout After 20-Day Consolidation

Shiba Inu (SHIB) is on the verge of a breakout after being trapped in a 20-day consolidation phase. While the broader cryptocurrency market has experienced significant upward momentum, SHIB has struggled to escape the grip of bearish forces. However, this could soon change as the daily candle on the SHIB chart is nearing a critical breakout point. The current resistance level has been tested once before, indicating its potential strength. Although whale activity has decreased, SHIB’s profitability has surged dramatically. The question now is whether traders can help Shiba Inu holders return to profitability.

Shiba Inu Price Celebrates Shibarium’s First Anniversary

In a celebratory mood, Shiba Inu’s lead developer, Shytoshi Kusama, shared a “Happy Birthday” gif with the hashtag “#Shibarium” to mark the first anniversary of the SHIB network. The celebration included highlights of Shibarium’s achievements and ongoing developments.

The first anniversary of Shibarium brought good news for SHIB holders, as the price increased by 1.5% in the past 24 hours, reaching $0.00001437. Additionally, Santiment analytics reported that the profit-to-loss ratio of daily transactions hit a 7-month high of 6.45.

For every SHIB transaction resulting in a loss today, 6.45 transactions have turned a profit, signaling a favorable day for Shiba Inu holders. Despite this, 72.79% of SHIB holders are still at a loss, though this could change if the anticipated breakout occurs.

According to Coinglass Crypto Derivatives Visualizer, open interest (OI) has increased by 0.85% in the last four hours, coinciding with a slight uptick in price. When both OI and price rise together, it suggests that traders are entering long positions in anticipation of further price increases for SHIB.

SHIB Price Eyes Potential Breakout

Shiba Inu’s price action indicates a potential reversal from its recent downtrend, with prices consolidating within a horizontal range. A bullish structure appears to be forming, as the SHIB price has moved above its 21-day EMA (red line), signaling a possible shift in momentum from bearish to bullish.

If SHIB breaks out of this range, it could face resistance at $0.00001450 and $0.00001554. Beyond these levels, the next significant resistance is around $0.00001783.

Technical indicators suggest strong buying pressure, but any upward movement might be short-lived if the price fails to break above the 50-day EMA. A sustained breakout above the 50-day EMA with increased trading volume could confirm a longer-term bullish reversal, with a target price around $0.00001783.

However, if SHIB fails to break out of the current range, it may fall to $0.00001290, indicating a weakening market. A drop below this level could invalidate the current bullish sentiment and lead to further declines.