After several months of stagnation in prices, a TradingView analyst has estimated that Shiba Inu could experience a momentum breakout soon. The asset has been range-bound since April, and the price dynamics show an accumulation and hesitation among traders.
The projection indicates that the token may move towards the upper resistance before retracing, potentially leading to a new wave of buying. Despite recent drawbacks, the market sentiment for Shiba Inu remains optimistic, driven by hopes of a sustained rally.
Analyst Highlights Key Support and Resistance Zones
ForexDreamVantage, a TradingView analyst, notes that Shiba Inu has been confined to a narrow range of consolidation over the past six months. The chart indicates that the token is moving between the areas of 0.00001080 and 0.00001760, with the lower limit serving as a “strong buy zone.”. The analyst determined this level as one of the key areas where buyers have consistently re-entered the market, helping maintain price stability.
Shiba Inu 1-day chart. Source: TradingView
In contrast, the upper region around $0.00001760 was described as the “trend reversal zone.” This level reportedly acted as a key resistance point on May 12, when Shiba Inu failed to break higher.
ForexDreamVantage indicated that SHIB may retest this resistance before retracing toward the $0.00001080 level to gather liquidity. The move, according to the analyst, could generate the strength required to push above the long-standing resistance barrier finally.
However, he emphasised that the upcoming rally hinges on the performance of major cryptocurrencies, particularly Bitcoin’s price trajectory. He pointed out that with Bitcoin currently experiencing a significant upswing, Shiba Inu could benefit from this optimistic sentiment and follow suit.
Market Pullback Tempers Short-Term Momentum
The crypto market in general has experienced a correction, which marginally deflated the momentum of SHIB in the short term. Statistics indicate that the price of Shiba Inu dropped to a daily low of 0.00001212, which is a 5.31% decrease after hitting the highest price of 0.00001281.
At the time of writing, Shiba Inu was trading at $0.00001216, reflecting a modest 1.3% decline in the last 24 hours.
