Shiba Inu (SHIB) forming a bull pennant pattern with potential 53% upside to $0.000037
Key resistance level identified at $0.000025
40,000 addresses hold 54.6 trillion tokens at $0.000025 average price point
Pattern shows convergence near apex, suggesting imminent breakout
Current trading price around $0.000024, down 4% over past week
Shiba Inu’s price action has formed a distinctive bull pennant pattern, suggesting a potential upward movement if certain technical conditions are met. The cryptocurrency, currently trading at $0.000024, shows signs of consolidation as it approaches a crucial resistance level at $0.000025.
The bull pennant pattern, identified by technical analyst Ali Martinez, consists of three main components: an initial upward trend forming the pole, followed by a consolidation phase creating the pennant structure, and an anticipated breakout point. This technical formation often precedes continued momentum in the direction of the initial trend.
Data from on-chain analysis reveals a substantial concentration of holders at the $0.000025 price point. Approximately 40,000 unique addresses currently hold 54.6 trillion SHIB tokens purchased at this average price level, creating a notable resistance zone that the asset must overcome for further upward movement.
The convergence of the pennant’s upper and lower trendlines indicates that Shiba Inu is approaching a decision point. Technical analysis suggests that a successful break above the $0.000025 resistance could trigger a rally toward $0.000037, representing a potential 53% increase from current levels.
Trading volume patterns show increased activity near the pattern’s apex, which typically precedes a definitive price movement. The consolidation phase has featured decreasing volatility, another characteristic of pennant formations before resolution.
The current price structure demonstrates a series of higher lows and lower highs, forming the triangular consolidation pattern characteristic of a pennant formation. This compression of price action often precedes a broader market move.
Market participants should note that the $0.000025 level serves a dual purpose as both a technical and psychological resistance point. The concentration of holders at this price level could influence short-term price action as traders may seek to exit positions near their break-even points.
Looking at recent price performance, Shiba Inu has experienced a 4% decline over the past week. This retracement occurs within the context of the larger consolidation pattern, maintaining the overall structure of the technical formation.
The presence of 54.6 trillion tokens held at the resistance level suggests potential selling pressure as the price approaches $0.000025. These holders, currently at or near break-even, may impact price action through their trading decisions.
Technical indicators support the pattern’s formation, with decreasing volume during the consolidation phase aligning with typical pennant characteristics. This decrease in trading activity often precedes an increase in volume during the eventual breakout.
The measured move target of $0.000037 is derived from projecting the height of the initial pole to the potential breakout point. This method of technical analysis provides a framework for potential price targets following pattern completion.
Historical price data shows similar patterns have formed in previous trading periods, though past performance does not guarantee future results. The current formation aligns with established technical analysis principles regarding continuation patterns.
The resistance at $0.000025 coincides with several technical factors beyond holder distribution, including previous support and resistance levels that have influenced price action in recent trading periods.
Market order book data indicates concentrated liquidity near the current price levels, suggesting active trading interest in both directions. This liquidity could influence the strength and direction of any potential breakout.
The most recent price action shows SHIB trading at $0.000024, maintaining its position within the pennant formation as market participants await potential catalysts for directional movement.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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