SHIB has just broken a downtrend line after confirming a double bottom in the resistance range of $0.00001063. This double bottom pattern, a reliable reversal signal, marked the end of a multi-week downtrend. Following this confirmation, the price of SHIB surpassed the resistance of $0.00001428 and is currently around $0.00001507.
SHIB is now approaching the resistance level of $0.00001580, suggesting a shift in momentum. The breakout implies that the bulls have regained control and could reclaim the area of $0.00001759. An upward continuation is more likely in this technical structure, as long as trading volume does not decrease and dips are bought.
DMI signals have aligned with the bullish market structure. The +DI is at a high of 37.57 and the -DI is at a depressed level of 11.60, indicating a strong upward movement. Additionally, the Average Directional Index (ADX) indicates a strong trend at 27.98.
This divergence of the indicators indicates that the market direction is under firm bullish control. Historically, these DMI patterns indicate prolonged trend movements, particularly compression by structural breakouts. Therefore, existing momentum indicators confirm the hypothesis that SHIB could extend its short-term bullish phase without immediate unsustainability.
Is it a good time to buy?
In short, the increased burning of SHIB tokens, the growing open interest, and the breakout of technical resistance align to shape a bullish outlook in the short term. With on-chain and momentum indicators showing exceptional strength, SHIB is well-positioned to rise. As always, do your research before investing.
