- SHIB price continues to form a descending parallel channel on the 4-hour chart.
- Shiba Inu is making a significant move upwards as it has finished rebounding off the lower trendline, heading higher.
- While the cryptocurrency market recovers from the recent crash, the meme-coin could reverse a period of underperformance.
SHIB price rebounded from a sharp decline alongside the top cryptocurrencies after Tesla CEO Elon Musk revealed “promising” developments on Bitcoin mining.
SHIB price primed for a breakout
SHIB price has been trading within a descending parallel channel on the 4-hour chart since mid-May. Shiba Inu has continuously formed lower highs and lower lows, which can be connected with parallel trendlines to show a downward trend.
Recently, SHIB price bounced off the channel’s lower trend line, heading north to tag the topside resistance. Despite almost two weeks of consolidation, Shiba Inu has overcome indecision, working in favor of the bulls after gaining over 55% in market value from its bottom.
An adjacent parallel channel could be drawn to determine the possible price target for SHIB price if accelerating interest is confirmed. Shiba Inu needs to escape above the upper trend line of the current parallel channel, coinciding with the strong resistance level given by the 50 four-hour moving average.
Should the meme-coin manage to break above $0.00001100, its market value could double. Indeed, it could reach $0.00001816, which coincides with the 27.2% Fibonacci extension level.
Investors must wait for confirmation before the bullish thesis can be validated.
SHIB/USDT 4-hour chart
Since there is little price history for an asset like Shiba Inu, it is essential to consider the downside potential.
Given the recent weakness witnessed in SHIB price action, the dog-based token is likely to find meaningful support at the lower trend line of the parallel channel. A downswing from the current price point would result in a 67% decline to a new all-time low.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.