Shiba Inu price has breached a two-month consolidation, indicating its readiness to move.
Investors can expect SHIB to rally 25% and tag the $0.0000315 resistance level.
Invalidation of the bullish thesis will occur on the daily candlestick close below the $0.0000210 support level.
Shiba Inu (SHIB) price continues its struggle above a key hurdle. This development comes as SHIB, an ERC-20 meme coin, reacts to the Ethereum spot ETF approval news. The uptrend is likely to pick up as the ETF approval deadline nears. Investors looking to accumulate SHIB have a good opportunity to do so before the meme coin shoots up.
Also read: Week Ahead: Ethereum and DeFi to come under spotlight this week
Shiba Inu price poised to move higher
Since setting up a local top at $0.0000457 on March 5, the Shiba Inu price has produced lower lows and lower highs. Drawing a trend line connecting these swing points shows a declining trend line, which was breached on May 20. This daily candlestick close above the declining trend line and above the horizontal support level of $0.0000253 is a sign of an uptick in buyer pressure.
Going forward, investors can expect SHIB to form a base above $0.0000253 and kickstart a 25% recovery rally to the $0.0000315 resistance level. In a highly bullish scenario, investors can expect the dog-based meme coin to retest $0.0000355, the midpoint of the $0.0000253 to $0.0000457 range.
The Relative Strength Index (RSI) has flipped the 50 mean level into a support floor, showcasing the spike in bullish momentum. The same can be seen with the Awesome Oscillator (AO), which has recovered above the zero mean level.
With a clear rise in bullish momentum and SHIB clearing key technical levels, a breakout rally is just around the corner.
SHIB/USDT 4-hour chart
The consolidation seen in the past two months was a good accumulation zone, which can be confirmed by Santiment’s Whale Transaction Count indicator. This index tracks transactions that are $100,000 or higher and can be used as a proxy for institutional investors’ activity.
