Shiba Inu (SHIB) explodes and challenges range resistance

Yesterday, Shiba Inu (SHIB) reached the top of the range it has traded since May 2021. If the token breaks across this zone, there could be a parabolic rally.

According to Coingecko, SHIB is currently the 47th largest cryptocurrency by market capitalization.

SHIB reaches range resistance

Since the price drop in May 2021, SHIB has traded in a range of $ 0.0000550 to $ 0.000950. Over a period of almost 4 months, the Altcoin has repeatedly tested these two levels again.

On September 16, SHIB rebounded 26% and hit the resistance area. At the time of writing, the price has been declined by this zone, leaving a long wick over it.

However, when the daily candle closes above $ 0.00000904, a higher high is printed on the daily chart. In combination with a higher ground (blue arrow) on September 7th, this could signal a reversal and the beginning of an upward impulse.

Daily SHIB / USDT Chart | Source: TradingView

The ability to break the resistance of the range and resume the uptrend is also confirmed by the increasing trading volume. In the past two days it reached its highest level since mid-June (red arrow).

Technical indicators confirm the possibility of the upward trend continuing. The RSI has crossed the 50 line and is rising. The MACD histogram has produced two positive momentum bars and the signal line is about to enter the positive zone. The stochastic oscillator is pointing up, nearing entry into the bullish zone above 80.

Daily SHIB / USDT Chart | Source: TradingView

Descending triangle

The daily chart shows that the price broke above the descending triangle on September 7th (orange arrow). On that day, SHIB rebounded 24% and began to consolidate for days. It then rose to the top of the range at $ 0.000950 and started a downward trend.

The downward move confirmed the triangle’s resistance line as support twice (orange circle). Since then, SHIB has grown by 40% and continues to climb.

The target for a breakout above this pattern, as measured by the height of the descending triangle, is $ 0.00001100. This resistance coincides with the external fib retracement level at 1.414 on the recent bearish move. When the SHIB reaches this level, it will confirm a breakout above the resistance of the range described above.

Daily SHIB / USDT chart | Source: TradingView

Future movement

The 4-hour short-term chart is showing a breakout above the descending resistance line, which has been respected since August 17th. The line was tested several times until it was decisively breached on September 16 with Block Large Volume.

At the same time, SHIB also broke the short-term resistance area at $ 0.000760 (green rectangle). It coincides with the 0.382 Fib retracement level. This zone is expected to act as a support in the short term if the price falls.

SHIB / USDT 4-hour chart | Source: TradingView

Here you can see the SHIB prices.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

SN_Nour

According to Beincrypto

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