Shiba Inu was gearing up for a run up to its ATH of $0.0000350, with its price movement taking shape within a symmetrical triangle. However, there were some tailwinds present in the near-term in the form a weakening RSI and MACD.
Bulls had to ensure SHIB trades above $0.00002757 in order to flush out selling pressure and trigger a break to the upside. At the time of writing, SHIB traded at $0.00002828, down by 3.4% over the last 24 hours.
SHIB 4-hour Chart
Source: SHIB/USD, TradingView
The formation of a symmetrical triangle presented massive upside for Shiba Inu. Based on the highs and lows within the pattern, SHIB eyed a 40% hike from the breakout point, which would set the alt onward to $0.000040. However, SHIB did need to meet a few conditions before witnessing the projected hike.
First, SHIB has to overtake 11 October’s swing high of $0.00003209 on strong volumes. Bulls then have to negotiate past a bearish double top at $0.00003462 with conviction in order to fully capitalize on its bullish setup.
On the other hand, an immediate rejection at $0.00003202 could bring in some near-term selling pressure which would shine light on $0.00002757 and $0.0000255 support levels. A breakdown could even extend all the way to $0.00002047 if the broader market fails to inject any bullish sentiment.
Reasoning
SHIB’s Relative Strength Index has been on a steady decline since the first week of October. Now if the RSI stays afloat above 50-55, the remaining sell pressure can be flushed out of the market. This would heighten chances of an upwards breakout.
However, expect a break in the opposite direction if the RSI weakens below 45. Similarly, bulls would need to prevent the MACD from closing below the half-line as this could invite some additional downwards pressure.
Conclusion
Before attempting a northbound breakout from its triangle, bulls had to ensure SHIB does not close below its immediate support line of $0.00002757. In order to climb above the $0.0000400-mark, SHIB would need to maintain strong volumes while overtaking key areas mentioned above.
