Shiba Inu, price suppressed then 'stirring'... If it breaks resistance, it will accelerate rapidly

▲ Shiba Inu (SHIB)/ChatGPT generated image

As Shiba Inu (SHIB) overcomes bearish trends and establishes a structure of higher lows, there are observations that its long-suppressed price movement could transition into a breakout phase.

According to cryptocurrency media outlet U.Today on May 6 (local time), Shiba Inu, after months of weak momentum and lower highs, has recently found stability and begun to show a steady upward trend. The current price structure resembles an ascending triangle, where buyers are entering at increasingly higher price points while the resistance level largely remains flat.

This pattern often leads to a breakout once sufficient pressure has accumulated over time. Recent market data also supports this change. A significant decrease in exchange inflows indicates a reduction in the number of tokens sent to exchanges for selling purposes, and short-term bullish movements accompanied by increased trading volume and strong engulfing patterns have been observed in shorter timeframes.

With renewed buyer activity, immediate selling pressure has decreased. As a result, Shiba Inu's price has maintained stability, securing room for upward movement. However, it is still too early to consider the overall trend completely reversed. The price is currently approaching the 100-day exponential moving average, which has acted as a resistance level for several months.

The key is repeated testing of the same resistance level. This zone can weaken with continued testing, and if Shiba Inu breaks through this zone and settles above it, trapped sellers may exit, and new buyers may enter, accelerating the upward momentum.

Within the market, reduced volatility and a narrow price range are interpreted as a compression phase preceding a directional move. U.Today stated that at this point, investors should monitor for confirmation of a resistance breakout rather than making hasty predictions. A clear break above the resistance opens up possibilities for higher price targets and a strong trend reversal, but if the breakout fails, Shiba Inu will remain in a consolidation phase, delaying any significant movement.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*