Gushiken Yona
Shiba Inu price coils tighter within a falling wedge pattern, stirring hopes of a breakout that could rewrite its all-time high. A new analysis points that the meme coin’s month-long squeeze signals quiet accumulation, a calm that may precede a storm.
Beneath the surface of recent market fluctuations, a technical formation is taking shape on the Shiba Inu charts that has caught the attention of traders. The pattern suggests a period of consolidation might be nearing an end, potentially setting the stage for a significant upward move for the popular cryptocurrency.
Crypto trader @army_shiba recently highlighted this development on the social media platform X. Analyzing the Shiba Inu price action on a monthly chart timeframe, the trader identified a classic technical pattern known as a falling wedge.
“$SHIB 1 Month chart clearly shows an accumulation in the falling wedge pattern,” the crypto trader stated, providing a chart visualization of the setup.
Understanding the Falling Wedge Impact on Shiba Inu Price
The falling wedge is a chart pattern recognized by technical analysts. It typically forms during a downtrend and is characterized by two converging trend lines sloping downwards. The upper line connects successive lower peaks in price, acting as resistance. The lower line connects lower troughs, forming support.
As the Shiba Inu price moves between these narrowing boundaries, trading activity often diminishes. This tightening range, depicted clearly on the trader’s shared chart with white trend lines boxing in the price candles, is interpreted by many analysts as a sign that selling pressure is waning. The bounces off the lower support line suggest buyers are stepping in, engaging in what @army_shiba referred to as “accumulation.”
This pattern is generally considered bullish because it implies the downtrend is losing momentum. The resolution typically anticipated is an upward breakout, where the price pushes decisively above the upper resistance trend line.
Chart Points to Accumulation Before Potential Surge
The chart shared by @army_shiba illustrates this concept vividly. Red and green candlesticks, representing monthly price movements, are contained within the wedge. A hand-drawn green line on the chart suggests a potential path forward: perhaps one more dip toward the lower support line before a powerful move upward, breaking through the upper resistance.
Furthermore, the chart includes a large white arrow projecting a significant upward target, pointing toward the 0.00010 USDT price level. This indicates the trader sees substantial upside potential for the Shiba Inu price if the pattern resolves bullishly. Reaching such a level from current prices (around 0.00001198 USDT on the chart) would mark a major rally.
Patience Advised While Eyeing New Shiba Inu Price Highs
Despite the bullish implications of the pattern, @army_shiba emphasized the need for patience. Technical patterns on long-term charts, like the monthly time frame analyzed here, can take considerable time to play out fully. The accumulation phase within the wedge might continue before enough buying pressure builds for a confirmed breakout.
“We’ll need some patience before it breaks out and reaches a new ATH,” the trader cautioned, referring to Shiba Inu’s all-time high price. This sentiment led to the advice for fellow investors: “Keep holding, keep stacking until then.”
While the falling wedge offers a hopeful technical outlook for the Shiba Inu price, it remains an indicator, not a guarantee. Confirmation requires a clear breakout above resistance, ideally supported by increased trading volume. Broader market conditions and external news events will also play a role in SHIB’s future trajectory.
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Yona has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
