On December 29th, the Shiba Inu coin price rebounded from the support trendline of a long-coming wedge pattern. The ongoing bullish sentiment in the crypto market assisted buyers in driving prices 7.6% higher within a week and reached the current price of $0.00000852. This bullish rally also breaks the overhead resistance trendline, offering a long-entry opportunity for interested traders.
Amid the last two months' downfall in the Shiba Inu coin, the daily technical chart showed the formation of a falling wedge pattern. Under the influence of this pattern, the prices fell inside two converging trendlines and reached a low of $0.000007869 mark.
In theory, this pattern formation indicates a losing bearish momentum as prices fail to achieve a longer downfall. Furthermore, with the recovery sentiment developing in the crypto market since the beginning of 2023, the SHIB price has steadily risen since last week.
Furthermore, the bullish rally backed by rising volume indicates that buyers are committed to this growth. Moreover, the Shiba Inu coin shows a 3% intraday jump, which breaches the pattern’s resistance trendline.
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This bullish breakout is an early sign of price recovery and offers a long entry opportunity for interested trades. Thus, if the breakout sustains above the trendline, the buyers will drive the price 22% higher to hit $0.0000104.
However, the potential rally may face in-between resistances of 50-day EMA and $0000096 before hitting the mentioned target.
Having said that, if the daily candle closes below the trendline, the bullish thesis will get invalidated, and the coin price may witness a longer correction.
Relative strength index: the daily-RSI slope, which represents the strength of current price action, has surged above the midline. The indicator value of 52% indicates a positive sentiment building up for SHIB.
EMAs: Along with $0.0000086 resistance, the 50-day EMA acts as a strong resistance and tries to undermine the potential rally.