Shiba Inu appears to be decoupling from the rest of the market after posting significant gains. Although SHIB looks ready for further upside, it has several hurdles to overcome.
Shiba Inu Prepares to Break Out
Shiba Inu appears to have the strength to breach a critical resistance barrier and advance toward new all-time highs.
The Dogecoin clone, part of a new breed of so-called “dog tokens,” has risen by more than 15% in the past 16 hours, despite the rest of the market struggling to recover from Wednesday’s flash crash. The sudden bullish impulse has pushed SHIB beyond the upper trendline of a bull flag that developed on its six-hour chart.
This bullish continuation pattern anticipates that Shiba Inu could advance another 200% if buy orders continue to pile up. A decisive six-hour candlestick close above the flag’s upper trendline at $0.000055 could ignite a new bull run toward $0.000175.
Transaction history shows that breaking through the $0.000055 resistance level may present some challenges. More than 18,000 have previously purchased over 26 trillion SHIB around this price level, based on IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model. These token holders may attempt to break even on their long positions as prices rise, which would slow down the uptrend. However, a sustained breach of the supply wall could validate the optimistic outlook presented by the bull flag pattern.
It is worth noting that if Shiba Inu slices through the $0.000055 resistance, it will have to overcome another hurdle at $0.000059 to be able to achieve its upside potential. If it clears both supply barriers, SHIB will have no opposition ahead of a new all-time high at $0.000175.
Disclosure: At the time of writing, the author of this feature owned BTC and ETH.